Ms letup will receive 600 per year at the end of each year, Finance Basics

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Ms letup will receive 600 per year at the end of each year

Question: Solve the following:

a) Ms. Letup will receive $600 per year at the end of each year for 35 years. What is this annuity worth today if money can be invested to earn 6.5% per year? (USPWF)

b) You deposit $2,000/year in a bank account at the end of each year for 20 years. The account pays 7% compounded annually. What will be the account value at the end of year 20?

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Finance Basics: Ms letup will receive 600 per year at the end of each year

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