Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use future value and present value calculations to determine the following. a . The future value of a $ 5 0 0 savings deposit after

Use future value and present value calculations to determine the following.
a. The future value of a $500 savings deposit after eight years at an annual interest rate of 1.5 percent. If you are using a table to calculate your answer, please only use the table in this link Exhibit 1B-1.(Round time value factors to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)
Future value $
563
b. The future value of saving $1,500 a year for five years at an annual interest rate of 2.25 percent. If you are using a table to calculate your answer, please only use the table in this link Exhibit 1B-2.(Round time value factors to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)
Future value $
c. The present value needed in a savings account that will earn 1.75 percent annual interest if $2,000 is needed at the end of four years. If you are using a table to calculate your answer, please only use the table in this link Exhibit 1B-3.(Round time value factors to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)
Present value $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Topics In Finance

Authors: Iris Claus, Leo Krippner

1st Edition

1119565162, 978-1119565161

More Books

Students also viewed these Finance questions