Fv of the second annuity problem

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1) Jor Amster is a young professional planning his future. He knows he needs to start saving (or investing) soon. But he also knows he doesn't have a lot of income right now. He expects his income - and so his ability to save - to rise over time.
So he makes this plan:
save $300/month for 2 years @2%
then save $400/month for 3 years @3%
then invest $1,000/month for 10 years @8%
Assume everything stays in one account, with rates of return rising for all his funds as given above. Also assume monthly compounding.
This is a compound problem:
Find the FV at the end of 24 months of that first ordinary annuity problem.
This FV then becomes a PV for the second annuity problem.
The FV of the second annuity problem becomes a PV for the third annuity problem.
If you never withdraw any funds from the account, if all funds earn the going rate of return for the time period, and if all of your savings are deposited at the end of each year, how much should you have in total at the end of 15 years?

Reference no: EM133072277

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