Question
You plan to save for the down payment on a home. You will open an account today, but make your first annual payment of $418
You plan to save for the down payment on a home. You will open an account today, but make your first annual payment of $418 at the end of each year (starting at the end of the next year). How much will your account be worth in 10 years if the account earns 8.1% annual interest.
How much will you need to have in account today to fund $826 annual payments for 13 years? Assume the account pays 4.2% annual interest and that you will receive the annual payments at the beginning of each year.
You wish to accumulate $810. You plan to make a deposit today into an account that pays 7.6% nominal interest. If your investment horizon is 12 years, how much do you need to deposit today to have the desired amount at the end of your investment horizon?
PLLLLEEAAASEEE SHOW WORK SO I CAN BETTER UNDERSTAND.
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