Another client, Wynona, decides that she will invest $5,000 per year i

QUESTION

Another client, Wynona, decides that she will invest $5,000 per year in a 6% annuity for the first ten years, then $6,000 for the next ten years, and then $4,000 per year for the last ten years, how much will she accumulate?[Hint: Treat each ten-year period as as separate annuity and compute the Fut
Key point to note: Once you get the future value for the first part, it will become the present value in the next part and so on till you find the final value. We will use the

e formula as above: FV for first 10 years = 65,903.97 FV after 20 years = 197,107.01 FV after the 30 years = 405,711.80

ANSWER:

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