A student wants save for college which begins in four years. How much will the student save assuming equal deposits of $2,000 at the beginning of each year and 5% interest? Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Future value of annuity due $1 Future Value of ordinary annuity of $1 5%/4 3.72325 3.54595 4.52563 4.31013 Required Computation:
A student wants save for college which begins in four years. How much will the student save assuming equal deposits of $2,000 at the beginning of each year and 5% interest? Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Future value of annuity due $1 Future Value of ordinary annuity of $1 5%/4 3.72325 3.54595 4.52563 4.31013 Required Computation:
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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A student wants save for college which begins in four years. How much will the student save assuming equal deposits of $2,000 at the beginning of each year and 5% interest? Following are appropriate factors from tables:
|
Table % / n |
Present Value of |
Present Value of ordinary annuity of $1 |
|
Future Value of ordinary annuity of $1 |
|
5%/4 |
3.72325 |
3.54595 |
4.52563 |
4.31013 |
Required Computation:
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