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What would you pay for an annuity

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Reference no: EM132267367

Future and Present Values of an Annuity: FVAn= PMT [FVFA k,n]

A) How much will $650 per year deposited at 12% be worth in 8 years?

B) How much would you have to save each year to have $65,000 in 10m years if the interest rate is expected to be 7%?

C) What interest rate will make $7,500 per year accumulate to $20,000 if the interest rate is 8%?

D) What would you pay for an annuity of $3,000 per year for 12 years if the interest rate is 10%?

Reference no: EM132267367

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