Option 1 Option 2 Option 3 Required: plans Annual Rate 5% 7% 10% at the end of e Interest Compounded Annually Annually Annually Period Invested. 5 years 5 years 5 years

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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GMG Studios plans to invest $55,000 at the end of each year for the next five years. There are three investment options available.
Annual
Rate
5%
Interest
Compounded
Annually
Annually
7%
Annually
Option 1
Option 2
Option 3
Option 1
Option 2
Option 3
10%
Required:
Determine the accumulated investment amount by the end of the fifth year for each of the options. (FV of $1. PV of $1. FVA of $1. and
PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.)
Accumulated
Investment Amount
$
Period
Invested
5 years
5 years
5 years
320,484 80
333,540.60
354,095.80
Transcribed Image Text:GMG Studios plans to invest $55,000 at the end of each year for the next five years. There are three investment options available. Annual Rate 5% Interest Compounded Annually Annually 7% Annually Option 1 Option 2 Option 3 Option 1 Option 2 Option 3 10% Required: Determine the accumulated investment amount by the end of the fifth year for each of the options. (FV of $1. PV of $1. FVA of $1. and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Accumulated Investment Amount $ Period Invested 5 years 5 years 5 years 320,484 80 333,540.60 354,095.80
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