Determine if the following situation is an investment or a loan. If the following is an investment, identify a) if it is a one-time or recurring investment, b) the number of compounding periods per year and c) the total number of compounding periods. As part of her retirement plan, Eve has decided to deposit $250 at the end of each month into an annuity with a 3.25% APR compound monthly. If she is to retire in 20 years, what will be the future value of her annuity? This situation represents a(n) .
Please include the excel formula.
Determine if the following situation is an investment or a loan.
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If the following is an investment, identify a) if it is a one-time or recurring investment, b) the number of compounding periods per year and c) the total number of compounding periods.
As part of her retirement plan, Eve has decided to deposit $250 at the end of each month into an annuity with a 3.25% APR compound monthly. If she is to retire in 20 years, what will be the future value of her annuity?
This situation represents a(n) .
a)
b)
c)
If she is to retire in 20 years, what will be the future value of her annuity? Use Excel to determine the answer.
Given that Eve has decided to deposit $250 at the end of each month into an annuity with a compounded monthly. Also given that if Eve retires in 20 years, we are asked to find the future value of her annuity.
(a) Since Eve deposits every month, the investment is a recurring investment.
(b) We are asked to find the number of compounding periods per year.
Since the interest is compounded monthly, we can find the compounding periods per year as 12.
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