Question: Which example would require solving for the future value of an ordinary annuity? a. you want to know the value of $1000 in 2 years

Which example would require solving for the future value of an ordinary annuity?

a. you want to know the value of $1000 in 2 years earning 4% interest.

b. you want to know the value of $100 deposits made at the end of each moth for six years.

c. you want to know the value of $200 deposits made at the beginning of each month for five years.

d. you want to know what you need today to have $7000 in five years if you can earn 7% interest on your money.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!