How much will be available for the second store after years

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Question - Hi-Tech Hardware has been in business for a few years and is doing well. The owner has decided to save for a future expansion to a second location. He invests $1,000 at the end of every month at 12% interest compounded monthly.

a. How much will be available for the second store after 2 1.2 years?

b. Use the formula for an ordinary annuity to calculate how much would be in the account if the owner saved for 5 years.

c. Use the formula for an annuity due to calculate how much would be in the account after 5 years if it had been an annuity due.

Reference no: EM133168688

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