HomeworkLib
Question

You plan to deposit $400 at the end of each year for 16 years in an account that pays 9 percent compoun ded annually. The ter

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The coorect answer is option B i.e. $13201

FORMULA
Annuity amount * [{(1+r/100)^n-1}/r]
Annual amount=$400
r=rate of interest =9% annually
n=no. of years =16
400*[[{(1.09)^16}-1]/0.09]= $13201.36
OR
USE "FV" formula in excel
i.e. FV(9%,16,-400)
= ₹ 13,201.36
0 0
Add a comment
Know the answer?
Add Answer to:
You plan to deposit $400 at the end of each year for 16 years in an...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You deposit $5,000 per year at the end of each of the next 25 years into...

    You deposit $5,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. How much could you withdraw at the end of each of the 20 years following your last deposit if all withdrawals are the same dollar amount? (The twenty-fifth and last deposit is made at the beginning of the 20-year period. the first withdrawal is made at the end of the first year in the 20-year period. A....

  • You will deposit $10,000 into an account at the beginning of each year for 10 years....

    You will deposit $10,000 into an account at the beginning of each year for 10 years. This account earns 10% simple interest per year, payable at the end of the year. Any interest earned in the account will be deposited into a second account. This account pays 5% interest, compounded semi-annually for the first 5 years, and pays a constant force of interest of 5% for the second 5 years. What is the total accumulated value in both accounts at...

  • You deposit $1,000 at the end of the year (k = 0) into an account that...

    You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate, this time the interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate once more to...

  • 8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next...

    8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...

  • You make a deposit of $927 into a savings account at the end of each year...

    You make a deposit of $927 into a savings account at the end of each year for the next 9 years. How much can you withdraw immediately after your last deposit if your savings account pays 7% compounded annually? Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), commas() or a decimal point (""

  • You plan to deposit $6,100 at the end of each of the next 15 years into...

    You plan to deposit $6,100 at the end of each of the next 15 years into an account paying 11.3 percent interest. a. How much will you have in your account if you make deposits for 15 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 30 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...

  • You expect to receive $1,000 at the end of each of the next 3 years. You...

    You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an account that pays 12 percent compounded annually. What is the future value of these payments, that is, the value at the end of the third year? a. $3,000.00 b. $3,310.00 c. $3,374.40 d. $3,400.96 e. $3,438.27

  • If you deposit $2,300 at the end of each year for each of the next 20...

    If you deposit $2,300 at the end of each year for each of the next 20 years into your account which pays 9% interest, how much money will you have in 20 years? Show your work.

  • Question 7 Six years from today you need $20,000. You plan to deposit $3,000 annually, with...

    Question 7 Six years from today you need $20,000. You plan to deposit $3,000 annually, with the first payment to be made a year from today, in an account that pays an 8% annual rate. Your last deposit, which will occur at the end of Year 6, will be for less than $3.000. How large will your last payment be?

  • You deposit $5000 in a credit union at the end of each year for 10 years....

    You deposit $5000 in a credit union at the end of each year for 10 years. The credit union pays 6% compound interest. Immediately after the tenth deposit, how much can you withdraw from your account

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT