What would be the value of a savings account started with $1340 , earning 4 perc

Question

What would be the value of a savings account started with $1340 , earning 4 percent (compounded annually) after 9 years?

Use the appropriate Time Value of Money table [Exhibit 1-A,  Exhibit 1-B,  Exhibit 1-C, OR Exhibit 1-D]

1-A

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-a.jpg

1-B

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-b.jpg

1-C

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-c.jpg

1-D

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-d.jpg

Explanation / Answer

Future value = current value * ( 1 + rate) ^N

= 1340* ( 1 + 0.04) ^ 9 = 1907.2378

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