Use these links to help solve http://lectures.mhhe.com/connect/0077493699/table1

Question

Use these links to help solve

http://lectures.mhhe.com/connect/0077493699/table11_1a.JPG

http://lectures.mhhe.com/connect/0077493699/table_11_2a.jpg

http://lectures.mhhe.com/connect/0077493699/table11_3A.JPG

http://lectures.mhhe.com/connect/0077493699/table11_4a.JPG

On January 1, 2013, you deposited $8,000 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 10 years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places.) Balance In The Savings Account 2. What is the total interest for the 10 years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Total Interest 3. How much interest revenue did the fund earn in 2013 and in 2014? (Round your answer to 2 decimal 3 and in 20147 (Round your places.) 2013 nterest R 2013Interest Revenue 2014Interest Revenue

Explanation / Answer

No.   Year   Future value   Interest   Effective rate
1 2013 8,640   640   8%
2   2014 9,331.2   1,331.2   16.64%
3 2015 10,077.7   2,077.7   25.9712%
4 2016 10,883.91   2,883.91   36.0489%
5 2017 11,754.62   3,754.62   46.9328%
6 2018 12,694.99   4,694.99   58.6874%
7 2019 13,710.59   5,710.59   71.3824%
8 2020 14,807.44   6,807.44   85.093%
9 2021 15,992.04   7,992.04   99.9005%
10 2022 17,271.4   9,271.4   115.8925%

Answers:

1.$17,271.4

2.$9,271.4

3.2013:$640

2014:$1,331.2

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

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