You purchased an annuity in which you deposit $100 a week at a fixed rate of 4% interest. What formula would you use to calculate its value at the end of 10 years? a = PMT(04/12, 12 120, 100) b. = FV * (04/12, 520, 100) c. = FV (.04/12, 10 * 52, -100) d = PMT(04/12, 12 120,,100)

You purchased an annuity in which you deposit $100 a week at a fixed rate of 4% interest. What formula would you use to calculate its value at the end of 10 years? a = PMT(04/12, 12 120, 100) b. = FV * (04/12, 520, 100) c. = FV (.04/12, 10 * 52, -100) d = PMT(04/12, 12 120,,100)

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

You purchased an annuity in which you deposit $100 a
week at a fixed rate of 4% interest. What formula would
you use to calculate its value at the end of 10 years? a
= PMT(04/12, 12 120, 100) b. = FV
*
(04/12, 520, 100) c. = FV (.04/12, 10 * 52, -100) d
= PMT(04/12, 12 120,,100)

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