Future Value of an Annuity: You Plan to Save $1,250

question 72

Multiple Choice

Future value of an annuity: You plan to save $1,250 at the end of each of the next three years to pay for a vacation. If you can invest it at 7 per cent, how much will you have at the end of three years? (Round to the nearest dollar.)

• A) $3,750
• B) $3,918
• C) $4,019
• D) $4,589

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