On each December 31, you plan to transfer $3,700 from your checking account into

Question

On each December 31, you plan to transfer $3,700 from your checking account into an investment account. The investment account will earn 5 percent annual interest, which will be added to the account balance at each year-end. The first deposit will be made December 31, 2015 (at the end of the period). (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.) l (m Required: 1. What will be the balance in the account at the end of the 10th year (i.e., 10 deposits)? (Round your final answer to the nearest whole dollar amount.) Table or Calculator Function: uture Value of $1 Annuity payments 3,700 5% Future Value:

Explanation / Answer

Years Deposite INT @ 5% Cumulative Value 2015 $3,700.00 $0.00 $3,700.00 2016 $3,700.00 $185.00 $7,585.00 2017 $3,700.00 $379.25 $11,664.25 2018 $3,700.00 $583.21 $15,947.46 2019 $3,700.00 $797.37 $20,444.84 2020 $3,700.00 $1,022.24 $25,167.08 2021 $3,700.00 $1,258.35 $30,125.43 2022 $3,700.00 $1,506.27 $35,331.70 2023 $3,700.00 $1,766.59 $40,798.29 2024 $3,700.00 $2,039.91 $46,538.20 TOAL $9,538.20 Toal Interest in the period = $9,538.20 Answer =1 Future Value = $46,538.20 Answer = 2 = Total Amount of interest = $9,538.20 Answer =3 Interest Revenue 2016 $185.00 2017 $379.25

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

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