Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs...
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Accounting
Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs to save enough to make a 30% down payment. For example, to buy a $100,000 home, a person would need to save $30,000. At the end of each year for six years, the women make the following investments:
Person
Annuity Payment
Type of Account
Expected Annual Return
Mary Kate
$2,900
Savings
3%
Ashley
3,900
CDs
5
Dakota
4,900
Bonds
8
Elle
4,900
Stocks
10
1. Calculate how much each woman is expected to accumulate in the investment account by the end of the fourth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)
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