The owner of Campus Cafe plans to open a second location on a satellite campus in 5yrs. She buys an annuity that pays 10.5% interest compounded annually

Question

A. If the payment is $4000 a year, find the future value of the annuity in 5yrs.

B. How much more interest would be earned if the owner could invest the full amount paid into the annuity in a regular compounded interest account with the same term for 4 years
$4000*((1.0105)^(5*1)-1)/(0.0105) 20424.43