Question
Identify the future value , the regular payment , the interest rate per period , and the number of periods for each of the following
Identify the future value , the regular payment , the interest rate per period , and the number of periods for each of the following annuity examples
1.A student deposits $150 each month in an account that earns 3% interest. After 6 years, the account is worth $11,817.
2.Starting with the birth of their child, a family sets aside $400 each year in a college fund. If the account earns 5% interest each year, it will be worth $11,253 when the child is 18.
3.A company establishes a sinking fund to cover planned maintenance, budgeting for $50,000 in 10 years. This fund will require payments of $1018 each quarter in an account that earns 4.1% interest.
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