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You will need at least $5,600 in four years and your friend says she can either loan you $5,600 all at once four years from
You will need at least $5,600 in four years and your friend says she can either loan you $5,600 all at once four years from now or she can deposit $1,400 in your savings account at the end of each year for the next four years. Your savings account earns 9% interest, compounded annually which option would be worth more to you four years from now, and how much more? (Future Value of $1, Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount) O The annual deposits will be worth $802 more than the $5,600 in four years. O The $5.600 in four years will be worth $802 more than the annual deposits. O The $5,600 in four years will be worth $610 more than the annual deposits. O The annual deposits will be worth $610 more than the $5,600 in four years
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