Derek will deposit $849.00 per year for 12.00 years into an account that earns 8.00%. The first deposit is made today. How much will be in the account 12.0 years from today? Note that he makes 12.0 total deposits.

Derek will deposit $2,554.00 per year into an account starting today and ending in year 24.00. The account that earns 5.00%. How much will be in the account 24.0 years from today?

Derek has the opportunity to buy a money machine today. The money machine will pay Derek $47,442.00 exactly 3.00 years from today. Assuming that Derek believes the appropriate discount rate is 5.00%, how much is he willing to pay for this money machine?

Answer rating: 100% (QA)

1 For the first scenario Using the formula for the future value of an annuity FV Pmt 1 rt 1 r Where ... View the full answer