After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and
1 answer:
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Answer:
64,313.74 ; 95,559.38 ; 47,283.11
Explanation:
by definition the present value of an annuity is given by:
where is the present value of the annuity,
is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:
1. P=8,200, n=25, i=12%
2. P=8,200, n=25, i=7%
3. P=8,200, n=25, i=17%