Question
Please help me answer this multiple step question. A.) Assume that, starting next year, you will make deposits of $989 each year into a savings
Please help me answer this multiple step question.
A.)
Assume that, starting next year, you will make deposits of $989 each year into a savings account. You will make a total of 6 annual deposits. If the savings account interest rate is 7%, what is the present value of this savings plan?
Enter your answer in dollars, rounded to the nearest cent (2 decimals).
B.)
Assume that you wish to make annual deposits into a savings account. The interest rate offered by the bank is 8%, and you plan to save for the next 10 years. If your goal is for the present value of your savings to be equal to $3,038, how much money must you deposit every year?
Enter your answer in dollars, rounded to the nearest cent (2 decimals).
C.)
Assume you've just received a bonus at work of $1,746. You deposit that money in the bank today, where it will earn interest at a rate of 5% per year. How much money will you have in the account after 9 years?
Enter your answer in dollars, rounded to the nearest cent (2 decimals).
Thank you in advance!!
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