Beverly and Kyle currently insure their cars with separate companies, paying $500 and $510 a year. If they insured both cars with the same company, they would save 15 percent on the annual premiums. What would be the future value of the annual savings over 10 years based on an annual interest rate of 6 percent? Use Exhibit 1-B. (Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value of annual savings

Beverly and Kyle currently insure their cars with separate companies, paying $500 and $510 a year. If they insured both cars with the same company, they would save 15 percent on the annual premiums. What would be the future value of the annual savings over 10 years based on an annual interest rate of 6 percent? Use Exhibit 1-B. (Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value of annual savings

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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