FUTURE VALUES OF AN ANNUITY On December 31, 2009, you sign a contract to make annual deposits of $4,200 in an investment account that earns 10 percent. The first deposit is made on December 31, 2009.

Required:

. Calculate what the balance in this investment account will be just after the seventh deposit has been made if interest is compounded annually.

. Determine how much interest will have been earned on this investment account just after the seventh deposit has been made if interest is compounded annually.

Exercise