You want to quit your job and return to school for an MBA degree 3 years from now,and you plan to save $7,000 per year,beginning immediately.You will make 3 deposits in an account that pays 5.2% interest.Under these assumptions,how much will you have 3 years from today?
A)$20,993
B)$22,098
C)$23,261
D)$24,424
E)$25,645

Question

Quizplus · Accepted Answer

The future value of an annuity due can be calculated using the formula: FV = P * [(1 + r)^n - 1] * (1 + r) / r. Here, P = $7,000, r = 5.2% or 0.052, and n = 3. Calculating this gives approximately $23,261.

You Want to Quit Your Job and Return to School