Personal Finance, FIN 2100 Kapoor 12th edition, University of Central Florida
Personal Finance, FIN 2100 Kapoor 12th edition, University of Central Florida
12th Edition
ISBN: 9781309091548
Author: N/A
Publisher: McGraw Hill Education
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Chapter 5, Problem 6FPP
Summary Introduction

To determine:

The future value of the annual deposits.

Introduction:
Future value refers to the value that is supposed to be received in future after considering the time value of money on a particular investment for a number of periods of time. It is the total amount to be received by an investor on the amount invested by him after certain period with the component of interest.

Annuity refers to a series of fixed cash flows, received or paid by a person at a specific frequency. These cash flows occur for a specified period of time.

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