Assignment:
Dave Bidini has saved 20000 for a down payment on a home and plans to save another 5000 at the end of each year for the next 5 yrs. He expects to earn 7.25% compounded annually on his savings. How much will be have in 5 years time?
Calculate the FV of an ordinary annuity consisting of quarterly payments of 1200 for 5 yrs if the payments earn 10% compounded quarterly for the first two yrs and 9% compounded quarterly for the last three years.
Provide complete and step by step solution for the question and show calculations and use formulas.