Assume you wish to save money on a regular basis to finance an exotic vacation in Dubai in the next 7 years. You are confident that, with sacrifice and discipline, you can force yourself to deposit $2,000 annually at the end of each period for the next 7 years into a savings account.
If the savings account is paying 12%, calculate the future value of this annuity. (4 Marks)
b. What would be the value if "part a" above were a future value annuity due? (2 Marks)
c. Assume we want to determine the balance in an investment account earning 6% annual interest, giving the following three-year deposits:
$400 in year 1, $800 in year 2, and $500 in year 3.
Calculate the future value of the cash flow mix stream
