Kaitlin wants to save money to purchase a car. She buys an annuity with yearly payments that earn 2.8% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 5 years if each yearly payment is $3797. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
Kaitlin wants to save money to purchase a car. She buys an annuity with yearly payments that earn 2.8% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 5 years if each yearly payment is $3797. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
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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Transcribed Image Text:Kaitlin wants to save money to purchase a car. She buys an annuity with yearly payments that earn 2.8% interest, compounded annually. Payments will be
made at the end of each year. Find the total value of the annuity in 5 years if each yearly payment is $3797.
Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
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