Assume you deposit $4,000 at the end of each year into an account paying 9.5 per

Question

Assume you deposit $4,000 at the end of each year into an account paying 9.5 percent interest. Requirement 1: How much money will you have in the account in 20 years? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Annuity future value $ Requirement 2: How much will you have if you make deposits for 40 years? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Annuity future value $

Explanation / Answer

Requirement 1:

F = 4000*(1.095^20-1/0.095)

= 216488.93

Requirement 2:

F = 4000*(1.095^20-1/0.095)

= 1546079.97

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