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Louise plans to save $3,000 a year every year for 10 years, beginning next year, and then stop. Thi amount that she has accumulated at the end of 10 years will then continue to grow for 30 more years. If the interest rate that she thinks she will be able to earn is 6% per year for all these years how much should Louis have in her account at the end of this 40 year period? (Assume this is an ordinary annuity and round to the nearest dollar.) $390,542 $259,281 O$406,717 O $227,111

Louise plans to save $3,000 a year every year for 10 years, beginning next year, and then stop. Thi amount that she has accumulated at the end of 10 years will then continue to grow for 30 more years. If the interest rate that she thinks she will be able to earn is 6% per year for all these years how much should Louis have in her account at the end of this 40 year period? (Assume this is an ordinary annuity and round to the nearest dollar.) $390,542 $259,281 O$406,717 O $227,111

Essentials Of Investments
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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Louise plans to save $3,000 a year every year for 10 years, beginning next year, and then stop. This amount that she has accumulated at the end of 10 years will then continue to grow for 30 more years. If the interest rate that she thinks she will be able to earn is 6% per year for all these years, how much should Louis have in her account at the end of this 40 year period? (Assume this is an ordinary annuity and round to the nearest dollar.) $390,542 $259,281 $406,717 O $227,111
Transcribed Image Text:Louise plans to save $3,000 a year every year for 10 years, beginning next year, and then stop. This amount that she has accumulated at the end of 10 years will then continue to grow for 30 more years. If the interest rate that she thinks she will be able to earn is 6% per year for all these years, how much should Louis have in her account at the end of this 40 year period? (Assume this is an ordinary annuity and round to the nearest dollar.) $390,542 $259,281 $406,717 O $227,111
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