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Back to Assignment Attempts Attempt 1 score is 1 Average 1 out of 3 1 / 3 6 . Future value calculations Future Value Calculations
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Future value calculations
Future Value Calculations
Lexi and Luke are still sitting together, with their notebooks and textbooks open, in a booth at a nearby coffee shop. Theyve been working practice problems from Dr Smiths personal finance class. Help Lexi and Luke complete the following three problems in their homework assignment.
Problem Within the month, Joshua is taking a new job and moving to a city with an outstanding rapid transit system. He intends to sell his car for $ and invest the money by placing it in a savings account. The account will pay per year in compound interest, and he wants to keep the funds on deposit for four years.
You can use the following table of Future Value Interest Factors:
Interest FactorsFuture Value of a Single Amount
Periods
At the end of his investment period, Joshua expects to have an accumulated balance of in his savings account. Note: Round your answer to the nearest whole dollar.
Problem Jacob is currently taking a course in personal finance and has learned the benefits of both starting a savings plan and starting it early. Therefore, he has decided to save $ per year in an account that pays He plans to open the account tomorrow and will make deposits at the end of each year, including this year, for the next years. Note: Round your answer to the nearest whole dollar.
You can use the following table of Future Value Interest Factors:
Interest FactorsFuture Value of an Annuity
Periods
By the end of his investment period, he will have saved
Problem Joshuas grandfather is pleased that his grandson is learning to save. To further encourage the practice, he has offered to give his grandson a gift of $ per year for each year that Joshua keeps the proceeds from the sale of his car investedpresumably for the next four years. He has opened a new savings account that will pay a rate of per year. Note: Round your answer to the nearest whole dollar.
You can use the following table of Future Value Interest Factors:
Interest FactorsFuture Value of an Annuity
Periods
If Joshuas grandfather makes deposits of $ per year into the new savings account for each of the next four years and the deposits are made at the end of each year, then the new savings account will have a total balance of at the end of year four.
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