Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

Assume you are to receive a 20-year annuity with monthly payments of $50. The first payment will be received at the end of month 1, and the last payment will be received at the end of the last month of Year 20. You will invest each payment in an account that pays 10% compounded monthly. You will stop making payments into the account at the end of year 20. What will be the value in your account at the end of Year 30?

Group of answer choices

$37,968

$278,236

$2,864

$102,782

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