Annuities pva or fva?

timer Asked: Nov 10th, 2016

Question description

Andrew Fastal is saving for a holiday in the United States in 3 years. He estimates that he will need $5000 to cover his airfare and all other expenses for a week-long holiday. If he can invest his money in an S&P/ASX 200 equity index fund that is expected to earn an average return of 10.3% over the next 3 years, how much will he have to save every year if he starts saving at the end of this year?

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