Assume you deposit $5,000 at the end of each year into an account paying 10.8 pe

Question

Assume you deposit $5,000 at the end of each year into an account paying 10.8 percent interest. (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

How much money will you have in the account in 20 years?

How much will you have if you make deposits for 40 years?

(note, please include formula)

Assume you deposit $5,000 at the end of each year into an account paying 10.8 percent interest. (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Requirement 1 Fv = PV(1+r)n FV = PV(PVAF,20 years) FV = 5000*8.18 Fv= $ 40920 Requirement 2 FV= 5000* 16.6 Fv = $ 83030

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