Question
Your family has given you 9000 dollars and today you have decided to put that money in a savings account that yields 6% per year.
Your family has given you 9000 dollars and today you have decided to put that money in a savings account that yields 6% per year. However, you already know that one year from today you will have to use part of that money to pay for a 3000 dollars expense, and another expense of 2000 dollars two years from now. a. If you are planning to collect whatever is left in your savings account 5 years from today, how much money will you be able to withdraw at that time (maximum value)? (note: round your answer to the nearest cent) b. Given the future value found in (a), compute the equivalent 5-year annuity.
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