3. Which of the following choices will re- sult in a greater future value at age sixty-five? Choice 1 is to invest $3,000 per year from ages twenty through twenty-six (a total of seven invest- ments) into an account and then leave it untouched until you are sixty-five years old, which is another forty years. Choice 2 is to begin at age twenty- seven and make $3,000 deposits into an investment account every year until you are sixty-five years old (a total of thirty-nine investments). Each account earns an average of 10% per year.

3. Which of the following choices will re- sult in a greater future value at age sixty-five? Choice 1 is to invest $3,000 per year from ages twenty through twenty-six (a total of seven invest- ments) into an account and then leave it untouched until you are sixty-five years old, which is another forty years. Choice 2 is to begin at age twenty- seven and make $3,000 deposits into an investment account every year until you are sixty-five years old (a total of thirty-nine investments). Each account earns an average of 10% per year.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Similar questions

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