GMG Studios plans to invest $44,000 at the end of each year for the next three y

Question

GMG Studios plans to invest $44,000 at the end of each year for the next three years. There are three investment options available.

   

   

Determine the accumulated investment amount by the end of the third year for each of the options. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)

GMG Studios plans to invest $44,000 at the end of each year for the next three years. There are three investment options available.

Explanation / Answer

solution:

Annual Rate annual Investment FVA $1 (R,N) Accumulated Investment amount a b a*b   Option 1 7% 44000 FVA $1 (7%,3) 3.21490                                         141,455.60   Option 2 9% 44000 FVA $1 (9%,3) 3.27810                                         144,236.40   Option 3 11% 44000 FVA $1 (11%,3) 3.34210                                         147,052.40

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