This exercise compares the future value of investing an

Reference no: EM13606472

This exercise compares the future value of investing an amount of money in different time frames. A total of $20,000 is invested into funds paying 6% interest over a 20yr period. Compute the future value at the end of 20yr for each of the following:

a)$10,000 is invested in an annuity each yr for 20 yr

b) $2000 is invested in an annuity each year for 10 yrs.After the first 10 yrs, the money remains in the fund drawing 6% interest compounded annually.

c)The entire $20,000 is invested at the beginning and remains in the fund, drawing 6% interest compounded annually.

d)Comment on the best strategy to accumulate wealth over the long term.

Reference no: EM13606472

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