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How much cash will have five years

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Question 1: You are trying to prepare budget based upon the amount of cash flow that you will have available 5 years from now. You are initially promised a regular annuity of $50 with the first payment to be made 1 year from now and the last payment 5 years from now. However, you are actually going to receive an annuity due with the same number of payments but where the first payment is to begin immediately. How much (or less) cash will you have 5 years from now based upon that error if the rate to invest funds is 10%?

Reference no: EM132570929

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