Question
You invest $5000 in a savings account today. You also invest $1000 at the end of years 6, 7, 8, 9, and 10. The account
You invest $5000 in a savings account today. You also invest $1000 at the end of years 6, 7, 8, 9, and 10. The account will earn 5% per year. What is the value of the account at the end of year 10? You invest $1000 per year in a savings account at the end of each of the next 10 years. What is the value of the account after 10 years?
You can buy an investment today that will provide you with a cash payout of $20,000 in 10 years from today. What are you willing to pay for this future cash payout today? You can buy an investment today that will provide a payout of $1000 per year at the end of each of the next 10 years. What are you willing to pay for these future payouts?
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