Purpose of buying new equipment four years from today

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Reference no: EM131991935

1. One year ago, the Jenkins Family Fun Center deposited $5,100 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,900 to this account. They plan on making a final deposit of $9,100 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 7 percent?

$26,447.10

$24,767.46

$25,784.41

$26,207.95

$27,345.40

2. You just paid $415,000 for a policy that will pay you and your heirs $16,100 per year forever with the first payment in one year. What rate of return are you earning on this policy? 4.01%

3.88%

4.14%

3.74%

4.07%

Reference no: EM131991935

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