Betty DeRose is going to deposit $4,000 into a bank account at the beginning of every six months for the next 4 years. Assume the bank account will earn 20% interest compounded semi-annually. Calculate the amount of interest Betty will earn over the four-year period. You will need to use the time value of money table factors posted in carmen to answer this question. To access these factors, click modules and then scroll to week 10. Click on the link labeled present & future value table factors. No credit will be awarded for this question using a means other than these posted table factors to answer this question.

Present Value of a Lump-Sum Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 22 23 24 25 60 12% 0.985 0.980 0.975 0.970 0.965 0.960 0.956 0.951 0.941 0.927 0.923 0.918 0.914 0.909 0.905 0.900 0.896 0.891 0.887 0.882 0.741 3% 0.915 0.888 0.862 0.838 0.813 0.789 0.766 0.744 0.701 0.641 0.623 0.605 0.587 0.570 0.553 0.537 0.522 0.507 0.492 0.478 0.169 5% 0.863 0.822 0.783 0.746 0.710 0.676 0.644 0.613 0.556 0.481 0.458 0.436 0.415 0.395 0.376 0.358 0.341 0.325 0.310 0.295 0.053 Rate of interest per period in percent 6% 8% 9% 10% 0.840 0.793 0.772 0.751 0.792 0.735 0.708 0.683 0.747 0.680 0.649 0.621 0.705 0.631 0.596 0.564 0.665 0.583 0.547 0.513 0.627 0.540 0.501 0.466 0.592 0.500 0.460 0.424 0.558 0.463 0.422 0.385 0.497 0.397 0.356 0.318 0.417 0.315 0.274 0.239 0.393 0.291 0.251 0.217 0.371 0.270 0.231 0.197 0.350 0.250 0.212 0.179 0.330 0.231 0.194 0.163 0.311 0.214 0.178 0.148 0.294 0.198 0.163 0.135 0.277 0.183 0.150 0.122 0.261 0.170 0.137 0.111 0.247 0.157 0.126 0.101 0.233 0.146 0.116 0.092 0.030 0.009 0.005 0.003 12% 0.712 0.635 0.567 0.507 0.452 0.403 0.360 0.322 0.257 0.183 0.163 0.145 0.130 0.116 0.103 0.092 0.082 0.073 0.065 0.058 0.001 15% 0.657 0.571 0.497 0.432 0.375 0.326 0.284 0.247 0.186 0.122 0.106 0.092 0.080 0.070 0.061 0.053 0.046 0.040 0.034 0.030 0.001 20% 0.578 0.482 0.401 0.334 0.279 0.232 0.193 0.161 0.112 0.064 0.054 0.045 0.037 0.031 0.026 0.021 0.018 0.015 0.012 0.010 0.001 Future Value of a Lump-Sum Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 22 23 24 25 60 12% 1.015 1.020 1.025 1.030 1.035 1.040 1.045 1.051 1.061 1.077 1.083 1.088 1.093 1.099 1.104 1.110 1.116 1.121 1.127 1.132 1.348 3% 1.092 1.125 1.159 1.194 1.229 1.266 1.304 1.343 1.425 1.558 1.604 1.652 1.702 1.753 1.806 1.860 1.916 1.974 2.033 2.094 5.891 5% 1.157 1.215 1.278 1.340 1.407 1.478 1.551 1.629 1.795 2.078 2.182 2.292 2.406 2.527 2.653 2.786 2.925 3.071 3.225 3.386 18.679 Rate of interest per period in percent 6% 8% 9% 10% 12% 15% 20% 1.191 1.259 1.295 1.331 1.404 1.520 1.728 1.263 1.360 1.411 1.464 1.573 1.749 2.073 1.338 1.469 1.538 1.610 1.762 2.011 2.488 1.418 1.586 1.677 1.771 1.973 2.313 2.986 1.503 1.713 1.828 1.948 2.210 2.660 3.583 1.594 1.851 1.992 2.144 2.476 3.059 4.299 1.689 1.999 2.171 2.357 2.773 3.517 5.159 1.790 2.159 2.367 2.594 3.105 4.045 6.191 2.012 2.518 2.812 3.138 3.896 5.350 8.916 2.396 3.172 3.642 4.177 5.473 8.137 15.407 2.540 3.425 3.970 4.595 6.130 9.357 18.488 2.692 3.700 4.327 5.054 6.866 10.761 22.186 2.854 3.996 4.717 5.559 7.690 12.375 26.623 3.025 4.315 5.141 6.115 8.612 14.231 31.948 3.207 4.661 5.604 6.727 9.646 16.366 38.337 3.399 5.033 6.108 7.400 10.803 18.821 46.005 3.603 5.436 6.658 8.140 12.100 21.644 55.206 3.819 5.871 7.257 8.954 13.552 24.891 66.247 4.048 6.341 7.911 9.849 15.178 28.625 79.496 4.291 6.848 8.623 10.834 17.000 32.919 95.396 32.987 101.257 176.031 304.482 897.597 4383.99 56347.5 Future Value of an Annuity Periods 142% 3 3.015 4 4.030 5 5.050 6 6.075 7 7.105 8 8.14 9 9.1821 10 10.228 12 12.335 15 15.536 16 16.614 17 17.697 18 18.785 19 19.879 20 20.979 21 22.084 22 23.194 23 24.310 24 25.432 25 26.559 60 69.770 3% 3.090 4.183 5.309 6.468 7.662 8.892 10.159 11.464 14.192 18.599 20.156 21.761 23.414 25.116 26.870 28.676 30.536 32.452 34.426 36.459 163.053 Rate of interest per period in percent 5% 6% 8% 9% 10% 3.152 3.183 3.246 3.278 3.310 4.310 4.374 4.506 4.573 4.641 5.525 5.637 5.867 5.985 6.105 6.801 6.975 7.336 7.523 7.715 8.142 8.393 8.925 9.200 9.487 9.549 9.897 10.636 11.028 11.435 11.026 11.491 12.487 13.021 13.579 12.580 13.180 14.486 15.193 15.937 15.917 16.870 18.977 20.140 21.384 21.578 23.276 27.152 29.360 31.772 23.657 25.672 30.324 33.003 35.949 25.840 28.218 33.750 36.973 40.544 28.150 30.905 37.450 41.301 45.599 30.539 33.759 41.446 46.018 51.159 33.065 36.785 45.762 51.160 57.275 35.719 39.992 50.422 56.764 64.002 38.505 43.392 55.456 62.873 71.402 41.430 46.995 60.893 69.531 79.543 44.502 50.815 66.764 76.789 88.497 47.727 54.864 73.105 84.700 98.347 353.584 533.128 1253.21 1944.79 3034.82 12% 15% 20% 3.374 3.472 3.640 4.779 4.993 5.368 6.353 6.742 7.441 8.115 8.753 9.929 10.089 11.066 12.915 12.299 13.726 16.499 14.775 16.785 20.798 17.549 20.303 25.958 24.133 29.001 39.580 37.280 47.580 72.035 42.753 55.717 87.442 48.883 65.075 105.931 55.749 75.836 128.117 63.439 88.211 154.740 72.052 102.444 186.688 81.698 118.810 225.026 92.502 137.632 271.031 104.603 159.276 326.237 118.155 184.168 392.484 133.334 212.793 471.981 7471.64 29219.9 281732 Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 22 23 24 25 60 12% 2.970 3.950 4.925 5.896 6.862 7.823 8.779 9.730 11.618 14.416 15.339 16.258 17.172 18.082 18.987 19.888 20.784 21.675 22.562 23.445 51.725 3% 2.828 3.717 4.579 5.417 6.230 7.019 7.786 8.530 9.954 11.937 12.561 13.166 13.753 14.323 14.877 15.415 15.936 16.443 16.935 17.413 27.675 5% 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.721 8.863 10.379 10.837 11.274 11.689 12.085 12.460 12.821 13.163 13.488 13.798 14.093 18.929 Present Value of an Annuity Rate of interest per period in percent 6% 8% 9% 10% 2.673 2.577 2.531 2.487 3.465 3.312 3.239 3.170 4.212 3.992 3.889 3.790 4.917 4.623 4.485 4.355 5.582 5.206 5.033 4.868 6.209 5.746 5.534 5.334 6.801 6.247 5.995 5.759 7.360 6.710 6.417 6.145 8.383 7.536 7.160 6.813 9.712 8.559 8.060 7.606 10.105 8.851 8.312 7.823 10.477 9.121 8.543 8.021 10.827 9.371 8.755 8.201 11.158 9.603 8.950 8.364 11.469 9.818 9.128 8.520 11.764 10.016 9.292 8.648 12.041 10.200 9.442 8.771 12.303 10.371 9.580 8.883 12.550 10.528 9.706 8.984 12.783 10.674 9.822 9.077 16.161 12.376 11.048 9.967 12% 2.402 3.037 3.604 4.111 4.563 4.967 5.328 5.650 6.194 6.810 6.974 7.119 7.249 7.365 7.469 7.562 7.644 7.718 7.784 7.843 8.324 15% 2.283 2.855 3.352 3.784 4.160 4.487 4.771 5.018 5.420 5.847 5.954 6.047 6.128 6.198 6.259 6.312 6.358 6.398 6.433 6.464 6.665 20% 2.106 2.588 2.990 3.325 3.604 3.837 4.031 4.193 4.439 4.675 4.729 4.774 4.812 4.843 4.869 4.891 4.909 4.924 4.937 4.947 4.999