Question
In: Finance
a. You will receive an annuity payment of $1,200 at the end of each year for...
a. You will receive an annuity payment of $1,200 at the end of each year for 6 years. What will be the total value of this stream of income invested at 7% by the time you receive the last payment?
b. How many years of investing $1,200 annually at 9% will it take to reach the goal of $12,000?
c. If you plan to invest $1,200 annually for 9 years, what rate of return is needed to reach your goal of $15,000?
Solutions
Expert Solution
a)
b)
Hence, It will take 7.45 years
c)
Hence, Rate of return is 8.02%
jeff jeffy answered 1 year agoRelated Solutions
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