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Author Question: Calculate the future value of an annuity of 5,000 each year for eight years, deposited at 6 percent. ... (Read 29 times)

cartlidgeashley

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on: Jul 10, 2018
Calculate the future value of an annuity of 5,000 each year for eight years, deposited at 6 percent.
 
  What will be an ideal response?

Question 2

Lower (less positive and more negative) the correlation between asset returns, ________.
 
  A) lesser the potential diversification of risk
  B) greater the potential diversification of risk
  C) lower the potential profit
  D) lesser the assets have to be monitored


jliusyl

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Reply #1 on: Jul 10, 2018
Answer to Question 1

FV = CF(1 + r)n - 1 / r = 5,000(1.06)8 - 1 / 0.06 = 49,487.34

Answer to Question 2

B


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