1] Assume you have $2,500 to invest today at 5% interest compounded annually.
Determine how much you will have accumulated in the account at the end of:
5 years
10 years
2] Assume instead an annuity of $2,500 (which means you will invest $1,500 per year) which will also be compounded at 5% interest annually.
Determine how much you will have accumulated in the account at the end of (future value)
5 years
10 years