If you put $6,000 in a savings account that pays interest at the rate of 4 percent, compounded annually, how much will you have in 5 years (Hint Use the future value formula ) How much interest will you earn during the 5 years If you put $6,000 each year into a savings account that pays interest at...

Use the formula FV PV 1 i n as the tables in the appendix do not have 4 FV 600 ...

If you put $6,000 in a savings account that pays interest at the rate of 4 percent,

Question:

If you put $6,000 in a savings account that pays interest at the rate of 4 percent, compounded annually, how much will you have in 5 years? (Hint: Use the formula.) How much interest will you earn during the 5 years? If you put $6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after 5 years?

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...