Lydia deposits $900 at the end of each year for 9 years in a savings account. The account pays 8% interest, compounded annually. Lydia calculates that the future value of the ordinary annuity is $11,238.80. What would be the future value if deposits are made at the beginning of each period rather than the end?

Lydia deposits $900 at the end of each year for 9 years in a savings account. The account pays 8% interest, compounded annually. Lydia calculates that the future value of the ordinary annuity is $11,238.80. What would be the future value if deposits are made at the beginning of each period rather than the end?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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