Future value-annuity versus annuity due
Future value: annuity versus annuity dueProblem: What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?
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a. Calculate the future value of the three proposed investments at t=2. b. Derive the expected rate of return of the three investments.
What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?
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How much must you save each year between now and retirement to achieve your goal?
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