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oney. Which option should you take and why? 5. What is the future value of $3,400 every year for 6 years at a 9 percent rate
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Answer #1

Amount deposited each year = P = $3400

Number of years = n = 6

Interest rate = r = 9%

Hence, future Value = FV = FV = P(1+r)n-1 +....+ P(1+r)2 + P(1+r) + P = P[(1+r)n -1]/r

= 3400[(1+0.09)6 -1]/0.09 = $25,579.33

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