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Future Value. Kyle has $500 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of
Future Value. Kyle has $500 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of deposit (CD) so that he will have a down payment on a car when he graduates from college in five years. His bank will pay 3.9% per year, compounded annually, for the five-year CD. How much will Kyle have in five years to put down on his car? In five years, the amount Kyle will have to put down on his car is $ (Ignore the effect of income taxes and round your answer to the nearest cent.) (Use your financial calculator or you may use the Financial Tables in Appendix C in computing your answer, ) Future Value. Sandra wants to deposit $200 each year for her son. If she places it in an investment account that averages a 5% annual return, what amount will be in the account in 21 years? How much will she have if the account earns 11% a year? If she places it in a savings account that pays 5 percent, the amount that will be in the account in 21 years is $(Round to the nearest cent.) (Use your financial calculator or you may use the Financial Tables in Appendix C in computing your
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