FIN 321 Time Value of Money Chapter 7 10/24/17 1 Future Value of a Lump Sum p. 267 Holly deposits S 30,000 in an account earning 4% interest, compounded monthly. How much will her account balance be in 3 years? Steve and his wife Christine recently opened an investment account with the intention of saving enough to purchase a house. Their goal is to have $45,000 for a down payment in 5 years. Their account wil guarantee them a return of 8% compounded annually. How much do they need to put into that account right now in order to reach their goal? sue deposits $1,000 into an account at the end of every year for 5 years. If the interest rate is 6% compounded annually, how much will she have accumulated at the end of 5 years? FVA V A