#6. You are saving for a new house and you put $25,000 per year in an account pa

Question

#6. You are saving for a new house and you put $25,000 per year in an account paying 4.5%. The first payment is made today. A.) How much will you have at the end of 3 years? ($81,954.78).

B. Also build a table/schedule to show your account each year (include beginning balance and ending balance each year, interest earned).

C. Build a table/schedule to show your account each year if your payments occur at the end of the year (ordinary annuities) (include beginning balance and ending balance each year, interest earned).

Explanation / Answer

The table will look like this

Beginning balance Interest end balance 25000 1125 26125 51125 2300.625 53425.625 78425.625 3529.153125 81954.77813

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