Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You plan to invest $10,000 into your new savings account the end of the year for the next 10 years. The interest earned in the
You plan to invest $10,000 into your new savings account the end of the year for the next 10 years. The interest earned in the account is 8% per year.
How much do you expect to have in the account at the end of 10 years?
Hint: work out the PV of the investment (an annuity), and take the future value of this amount. Alternatively, use the formula for the future value of an annuity from the slides.
A. $100,000
B. $108,000
C. $67,101
D. $144,866
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started