calculator solutionvChang is investing $2,500 today and will do so at the beginning of each of the next six years for a total of
1 answer:
Answer: $28,249.25
Explanation:
As the payments are constant, this represents an annuity. Also, as the payment is made at the beginning of every period, it is an Annuity Due.
The value of the end of the 7 years is the future value of the annuity due which is found by:
= Annuity * Future value factor of an annuity, 7 years, 12%
= 2,500 * 11.2997
= $28,249.25
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