Assume you deposit $5,100 at the end of each year into an account paying 9.75 pe

Question

Assume you deposit $5,100 at the end of each year into an account paying 9.75 percent interest

Requirement 1: How much money will you have in the account in 18 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).)

Annuity future value?

Requirement 2: How much will you have if you make deposits for 36 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).)

Annuity future value?

Explanation / Answer

a)use fv formuale in excle to find

=fv(rate,nper,pmt,pv,type)

rate=9.75% nper=18 pmt=5100 type=0

FV(9.75%,18,-5100,,0)=$226,848.38

b)

rate=9.75% nper=36 pmt=5100 type=0

FV(9.75%,36,-5100,,0)=$1,437,494.47

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