Future value of annuity = payment per period * [(1+i)^n-1]/i
i = interest rate per period
n = number of periods
=>
Future value of annuity
= 3850 * [(1+0.08)^5 - 1]/0.08
= 3850 * 5.867
= 22587.95
In an attempt to have funds for a down payment, Jan Carlson plans to save $3,850...
In an attempt to have funds for a down payment, Jan Carlson plans to save $3,300 a year for the next five years. With an interest rate of 8 percent, what amount will Jan have available for a down payment after the five years? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Down payment 10
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