document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=197401>Question 197401</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0131273183/algebrahomeworkh>Financial Management: Principles and Applications</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> I would like to know if I am on the right track or not in answering this question. 5-5A (compound annuity) What is the accumulated sum of each of the following streams of payments?\r<BR>\n" );
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document.write( "d. $25 a year for 3 years compounded annually at 2 percent\r<BR>\n" );
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document.write( "This is what I have done: <BR>\n" );
document.write( "25.00 + 25.00(1+.02) + 25.00(1+.02)^2 = 76.51\r<BR>\n" );
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document.write( "Am I on the right track?\r<BR>\n" );
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document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #148077 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=148077\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> What is the accumulated sum of each of the following streams of payments? <BR>\n" );
document.write( "d. $25 a year for 3 years compounded annually at 2 percent <BR>\n" );
document.write( "This is what I have done: <BR>\n" );
document.write( "25.00 + 25.00(1+.02) + 25.00(1+.02)^2 = 76.51 <BR>\n" );
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document.write( "Assume that the 1st $25 is in for 3 years : 25(1.02)^3<BR>\n" );
document.write( "Assume that the 2nd $25 is in for 2 years : 25(1.02)^2<BR>\n" );
document.write( "Assume that the 3rd $25 is in for 1 year : 25(1.02)<BR>\n" );
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document.write( "Is that what you are looking for?<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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