Five annual deposits in the amounts of $15,000, $14,000, S13,000, S12,000, and $
ID: 2615897 • Letter: F
Question
Five annual deposits in the amounts of $15,000, $14,000, S13,000, S12,000, and $11,000, in that order, are made into a fund that pays interest at a rate of 10% compounded annually. Determine the amount in the fund immediately after the fifth Click the icon to view the interest factors for discrete compounding when i-10% per year Immediately after the fifth deposit there will be in the account. (Round to the nearest dollar.) More Info Compound Present Worth Factor Gradient Present Worth (P/G' i, N) 0.0000 0.8264 2.3291 4.3781 6.8618 Compound Sinking Present Capital Gradient Uniform Fund Factor (A/F, i, N) 1.0000 0.4762 0.3021 0.2155 0.1638 Worth Factor (P/A, i, N) 0.9091 1.7355 2.4869 3.1699 3.7908 Factor FIP i, N) (PIF, i, N) 1.1000 1.2100 1.3310 1.4641 1.6105 0.9091 0.8264 0.7513 0.6830 0.6209 Factor (FIA, i, N) 1.0000 2.1000 3.3100 4.6410 6.1051 Factor (AIP, i, N) 1.1000 0.5762 0.4021 0.3155 0.2638 (A/G, i, N) 0.0000 0.4762 0.9366 1.3812 1.8101 1.7716 1.9487 2.1436 2.3579 2.5937 0.5645 0.5132 0.4665 0.4241 0.3855 7.7156 9.4872 11.4359 13.5795 15.9374 0.1296 0.1054 0.0874 0.0736 0.0627 4.3553 4.8684 5.3349 5.7590 6.1446 0.2296 0.2054 0.1874 0.1736 0.1627 2.2236 2.6216 3.0045 3.3724 3.7255 9.6842 12.7631 16.0287 19.4215 22.8913 10Explanation / Answer
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=$15000(1.1)^4+$14000(1.1)^3+13000(1.1)^2+12000(1.1)+$11000
=(15000*1.4641)+(14000*1.3310)+(13000*1.2100)+(12000*1.1)+11000
which is equal to
=$80526(Approx).
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