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Dave plans to deposit $3,300 in an IRA account on April 15, Year 1. The account...

Dave plans to deposit $3,300 in an IRA account on April 15, Year 1. The account will earn 3% annually. If he repeats makes this $3,300 deposit on April 15 of the next 15 years, how much will he have on deposit on April 14, Year 16? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to the nearest whole number.)

deposit amount?

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Answer #1

Solution:

Future value on April 14, year 16 = $3,300 * Cumulative FV factor at 3% for 15 periods of annuity due

= $3,300 * 19.15688

= $63,218

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