Hi-tech hardware has been in business for a few years and, Ask an Expert

Management Studies

Hi-Tech Hardware has been in business for a few years and is doing well. The owner has decided to save for a future expansion to a second location. He invests $1,000 at the end of every month at 12% interest compounded monthly.

a. How much will be available for the second store afteryears?

b. (Optional) Use the formula for an ordinary annuity to calculate how much would be in the account if the owner saved for 5 years.

c. (Optional) Use the formula for an annuity due to calculate how much would be in the account after 5 years if it had been an annuity due.

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Category:- Management Theories
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