Question
Your mother wishes to know how much she should save today in order to be able give your niece $100 when she graduates college in
Your mother wishes to know how much she should save today in order to be able give your niece $100 when she graduates college in 4 years. Mom can earn 2% compounded annually in the meantime.
Which formula would you use?
| FVA annuity due |
| FVA ordinary annuity |
| PVA ordinary annuity |
| PV lump-sum
You have $4,000 to invest today. You wish to invest it for 3 years and can earn 1% compounded annually on your money. Which formula will tell you how much you will have at the end of that time?
|
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Personal Finance
Authors: Elizabeth B. Goldsmith
1st Edition
0534544959, 9780534544959
