Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the future value of an account after you've contributed $ 230 at the end of each year for 40 years assuming you can earn
Calculate the future value of an account after you've contributed $ 230 at the end of each year for 40 years assuming you can earn 4.50 percent compounded annually, and that you don't make a withdrawal during the 40-year period. Now calculate the value of the same account if you stop making contributions after 30 years. What does this tell you about the power of time when trying to accumulate wealth? Click on the table icon to view the FVIFA table Click on the table icon to view the FVIF table After you've contributed $ 230 at the end of each year for 40 years assuming you can earn 4.50 percent compounded annually, and that you don't make a withdrawal during the 40-year period, the value of this account at the end of 40 years would be $ (Round to the nearest cent.) Data Table Future Value of an Annuity (FVIFA) 10 20 30 40 4.0% 12.0061 29.7781 56.0849 95.0255 4.5% 12.2882 31.3714 61.0071 107.0303 5.0% % 12.5779 33.0660 66.4388 120.7998 5.5% 12.8754 34.8683 72.4355 136.6056 6.0% 13.1808 36.7856 79.0582 154.7620 6.5% 13.4944 38.8253 86.3749 175.6319 7.0% 13.8164 40.9955 94.4608 199.6351 7.5% 14.1471 43.3047 103.3994 227.2565 8.0% 14.4866 45.7620 | 113.2832 259.0565 8.5% 14.8351 48.3770124.2147 295.6825 9.0% 15.1929 51.1601 136.3075 337.8824 9.5% 15.5603 54.1222 149.6875 386.5200 10.0% 15.9374 57.2750 164.4940 442.5926 10.5% 16.3246 60.6308 180.8815 507.2516 Data lable Compound Sum of $1 (FVIF) 10 20 30 40 4.0% 1.4802 2.1911 3.2434 4.8010 4.5% 1.5530 2.4117 3.7453 5.8164 5.0% 1.6289 2.6533 4.3219 7.0400 5.5% 1.7081 2.9178 4.9840 8.5133 6.0% 1.7908 3.2071 5.7435 10.2857 6.5% 1.8771 3.5236 6.6144 12.4161 7.0% 1.9672 3.8697 7.6123 14.9745 7.5% 2.0610 4.2479 8.7550 18.0442 8.0% 2.1589 4.6610 10.0627 21.7245 8.5% 2.2610 5.1120 11.5583 26.1330 9.0% 2.3674 5.6044 13.2677 31.4094 9.5% 2.4782 6.1416 15.2203 37.7194 10.0% 2.5937 6.7275 17.4494 45.2593 10.5% 2.7141 7.3662 19.9926 54.2614
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started