Starratt Alexander is considering investing specified amounts in each of four investment opportunities described below. For each opportunity, determine the amount of money Starratt will have at the end of the given investment horizon.
Investment A: Invest a lump sum of $2,750 today in an account that pays 6 percent annual interest and leave the funds on deposit for exactly fifteen years.
Investment B: Invest the following amounts at the beginning of each of the next five years in a venture that will earn 9 percent annually and measure the accumulated value at the end of exactly five years:
|
Beginning of year
|
Amount
|
|
1
|
$ 900
|
|
2
|
1,000
|
|
3
|
1,200
|
|
4
|
1,500
|
|
5
|
1,800
|
Investment C: Invest $1,200 at the end of each year for the next ten years in an account that pays 10 percent annual interest and determine the account balance at the end of year 10.
Investment D: Make the same investment as in investment C but place the $1,200 in the account at the beginning of each year.