Today is Amy's 22th birthday. Starting today, Any plans to begin saving for her retirement, which she expects to be at age 68. Her plan is to contribute $6,000 to a brokerage account each year on her birthday.Her first contribution will take place today. Her final contribution will take place on her 67th birthday. Her grandpa has decided to help Amy with her savings, which is why he gave Amy $3,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 8.9 percent. How much will Any expect to have in her account at retirement (on her 68th birthday)? Hint: think of the cash flow type, annuity DUE. Inputs: Output: Initial deposit: Future Balance Annual Contribution: Num of periods: Annual Return:

Today is Amy's 22th birthday. Starting today, Any plans to begin saving for her retirement, which she expects to be at age 68. Her plan is to contribute $6,000 to a brokerage account each year on her birthday.Her first contribution will take place today. Her final contribution will take place on her 67th birthday. Her grandpa has decided to help Amy with her savings, which is why he gave Amy $3,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 8.9 percent. How much will Any expect to have in her account at retirement (on her 68th birthday)? Hint: think of the cash flow type, annuity DUE. Inputs: Output: Initial deposit: Future Balance Annual Contribution: Num of periods: Annual Return:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 30P

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H. Today is Amy's 22th birthday. Starting today, Any plans to begin saving for her retirement, which she expects to be at age 68. Her plan is to contribute $6,000 to a brokerage account each year on her birthday.Her first contribution will take place today. Her final contribution will take place on her 67th birthday. Her grandpa has decided to help Amy with her savings, which is why he gave Amy $3,000 today as a birthday present to help get her account started. Assume that the account has an expected annual return of 8.9 percent. How much will Any expect to have in her account at retirement (on her 68th birthday)? Hint: think of the cash flow type, annuity DUE.
Inputs:		Output:
Initial deposit:		Future Balance
Annual Contribution:
Num of periods:
Annual Return: