Question
How much will you have in a savings account in ten years, if you deposit $1,600 in the account at the end of each year
How much will you have in a savings account in ten years, if you deposit $1,600 in the account at the end of each year and the account earns 8% interest, compounded annually? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Round your FV factor to 4 decimal places and final answer to the nearest dollar amount.)
A) $17,280 B) $23,179 C) $27,906 D) $16,000
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Your grandmother has told you she can either give you $4,700 now or $5,300 when you graduate from college in three years. Your savings account earns 3% interest, compounded annually. Which option would be worth more to you now, and how much more? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Round your PV factor to 4 decimal places and final answer to 2 decimal places.)
The $5,300 in the future is worth $200.00 more than the $4,700 now. | |
The $4,700 now is worth $200.00 more than the $5,300 in the future. | |
The $4,700 now is worth $150.03 more than the $5,300 in the future. | |
The $5,300 in the future is worth $150.03 more than the $4,700 now. |
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