QUESTION

# Dwayne invests \$4,700 in a savings account at the beginning of each of the next twelve years.

1.     Dwayne invests \$4,700 in a savings account at the beginning of each of the next twelve years. If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth after the last annuity payment is made?

2.   Robert invests \$650 in a savings account at the beginning of each of the next seven years. If his opportunity cost rate is 5 percent compounded annually, how much will his investment be worth after the last annuity payment is made? Nper = 7, rate = 5, PV = 0, PMT = - 650;

3.  Jason's opportunity cost rate is 8 percent compounded annually. How much must he deposit in an account today if he wants to receive \$5,400 at the end of each of the next 10 years? Nper = 10, Rate= 8, FV = 0, PMT = -5,400

4.   If Emma purchased a 5 year annuity and she pays \$5000 in year 1, \$300 in year 2, \$2000 in year 3, \$1500 in year 4, and \$1000 in year 5, at a 5% rate, what is the worth of the investment today?