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Each Year for the Next 10 Years,Carmen Lector Will Deposit

Question 87

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Each year for the next 10 years,Carmen Lector will deposit $4,000 into an investment fund that pays 8% compounded annually.
a.What is the present value of those investment payments if the first of 40 deposits are made at the end of each year?
b.What is the present value of those investment payments if the first of 40 deposits are made at the beginning of each year?

Correct Answer:

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a.$4,000 × 6.71008 (present va...

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