Future Value of Annuity. Kirk can take his $960 income tax refund and invest it in a 36-month certificate of deposit at 9%, compounded monthly, or he can use the money to purchase a home entertainment system and put $30 a month in a bank savings account that will pay him 9% annual interest. Which choice will give him more money at the end of three years?

Future Value of Annuity. Kirk can take his $960 income tax refund and invest it in a 36-month certificate of deposit at 9%, compounded monthly, or he can use the money to purchase a home entertainment system and put $30 a month in a bank savings account that will pay him 9% annual interest. Which choice will give him more money at the end of three years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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