Question: a. You plan to save $996 per year for 4 years. You will make your first payment to the account at the beginning of the
a. You plan to save $996 per year for 4 years. You will make your first payment to the account at the beginning of the year (immediately). The bank will pay 4.7% annual interest. How much will you have in the account at the end of the investment horizon (in 4 years?
Enter your answer as a number with 2 places of precision (i.e. 1.23). Do not include dollar signs or commas
b. Suppose you win the Publishers Clearing House Sweepstakes. The money is to be paid in equal, annual installments of $1,262 at the end of each year for the next 29 years. If the appropriate discount rate is 4.8%, how much is the sweepstakes worth today?
Enter your answer as a number with two decimal places of precision (i.e. 1.23). Do not include dollar signs or commas. Do NOT enter your answer as a negative number.
c. You plan to save $1,143 per year for 5 years. You will make your first payment to the account at the end of the year. The bank will pay 4.2% annual interest. How much will you have in the account at the end of the investment horizon (in 5 years)?
Enter your answer as a number with 2 places of precision (i.e. 1.23). Do not include dollar signs or commas.
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