Assume you deposit $5,400 at the end of each year into an account paying 10.5 pe

Question

Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest.

How much money will you have in the account in 17 years? (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 will you have if you make deposits for 34 years? (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).)

Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest.

Explanation / Answer

Use financial calculator for such solution

PMT=5400 is the yearly installment

1/Y=10.5 is the yield on the deposits

N=17 which means number of years

PV=0

Now you need FV

so press CPT

THEN CLICK FV

THEN FV=229349.50

2

Use financial calculator for such solution

PMT=5400 is the yearly installment

1/Y=10.5 is the yield on the deposits

N=34 which means number of years

PV=0

Now you need FV

so press CPT

THEN CLICK FV

THEN FV=1481499.98

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