A relative has promised to pay you $87.00 today, and he will pay you additional payments every year for the next five years. Each year he will add $76.00 to the previous payment. (So, the payment in year 1 will equal $163.00). You decide to save every dollar you are given and will invest the money in an account paying 4.00% annual interest. How much money will you have accumulated in five years?

Answer rating: 100% (QA)

To calculate the future value of the payments we can use the formula FV C1 rn 1 r where FV is the fu... View the full answer