The owner of the campus cafe plans to open a secound location on a satillite campus in 6 years. She buys an annuity that pays 11.5% interest compunded annually. Round your answer to the nearest cent. a) If the payment is $3,000 a year, find the future value of the annuity in 6 years. The future annuity is 24,040.15 b) How much more interest would be earned if the owener could invest the full amount paid into the annuity in a regular compound-interest account with the same terms for 5 years?

The owner of the campus cafe plans to open a secound location on a satillite campus in 6 years. She buys an annuity that pays 11.5% interest compunded annually. Round your answer to the nearest cent. a) If the payment is $3,000 a year, find the future value of the annuity in 6 years. The future annuity is 24,040.15 b) How much more interest would be earned if the owener could invest the full amount paid into the annuity in a regular compound-interest account with the same terms for 5 years?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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