As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inex
1 answer:
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Answer:
Option (D) is correct.
Explanation:
1.We use the formula:
where
A=future value
P=present value
r=rate of interest
n=time period.
= 1,060 [1.2544 + 1.12 + 1]
= 1,060 × 3.3744
= $3,576.864
Therefore, the amount of $3,576.864 will Ashley have to buy a new LCD TV at the end of three years.
(b) Future value of annuity due = Future value of annuity × (1 + interest rate)
= $3,576.86(1 + 0.12)
= $3,576.86 × 1.12
= $4,006.08
She will save around $4,006.08