ue: .00 points you Invest $9.300 per period for the following number of periods,

Question

ue: .00 points you Invest $9.300 per period for the following number of periods, how much would you have in each of the following instance se Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods a. In 11 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 declmal places.) Future value b. In 40 years at 7 percent? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Future value Hints References eBook &Resources; Hint#1 Check my work MacBook Air

Explanation / Answer

a. in 11 years @8%.

since $9300 is invested per period, we can call it as an annuity series of payments.

future value of annuity = P [(1+r)^n-1] /r

here,

P =$9300

r = 8% =>0.08.

n=11 years.

now,

Future value= $9300[(1.08)^11-1] / 0.08

=>$9300[1.331639]/0.08

=>$9300 * 16.6454875

=>$154,803.03.

now,

b.in 40 years @7%.

FV of annuity = P[(1+r)^n-1]/r

here,

P=$9300

r=7%=>0.07.

n = 40 years

now

future value = $9300[(1+0.07)^40- 1]/0.07

=>$9300[14.9744578-1]/0.07

=>$9300*199.635111

=>$1,856,606.53.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.