Isabella is saving $6,200 at the beginning of each month, for 2 years. How much will they have if the money earns 15% compounded monthly? Group of answer choices $58,745 $174,440 $172,286 $56,622
Isabella is saving $6,200 at the beginning of each month, for 2 years. How much will they have if the money earns 15% compounded monthly? Group of answer choices $58,745 $174,440 $172,286 $56,622
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Isabella is saving $6,200 at the beginning of each month, for 2 years. How much will they have if the money earns 15% compounded monthly?
Group of answer choices
$58,745
$174,440
$172,286
$56,622
Expert Solution
Step 1: Brief description
The above example is a type of annuity due. So we need to find out the future value of annuity due.
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