Question

For 8 years, $97 is deposited each week into an account that earns 2.1% interest, compounded...

For 8 years, $97 is deposited each week into an account that earns 2.1% interest, compounded weekly (52 times a year). The account currently has $300 in it. How much will be in the account after 8 years? Round your answer to two decimal places if rounding is necessary. There is a $ sign next to the answer box, so do not type a $ sign in your answer

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Value of account after 8 years is calculated using FV function in Excel :

rate = 2.1%/52 (converting annual rate into weekly rate)

nper = 8 * 52 (8 years with 52 deposits each year)

pmt = -97 (Weekly deposit. This is entered with a negative sign as it is a cash outflow)

pv = -300 (Current value of account. This is entered with a negative sign as it is a like a cash outflow today)

FV is calculated to be $44,284.86

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose a savings account earns 3% interest compounded monthly. After the first month $100.00 is deposited...
Suppose a savings account earns 3% interest compounded monthly. After the first month $100.00 is deposited into the account. Each subsequent month the deposit increases by 1%. Thus, in month 2, $101.00 is deposited, and in month 3, $102.01 is deposited. Find the account balance after 2 years if initially there is $400 in the account.
If $8000 is deposited at the end of each half year in an account that earns...
If $8000 is deposited at the end of each half year in an account that earns 6.7% compounded semiannually, how long will it be before the account contains $130,000? (Round your answer to one decimal place.) Find the future value of an annuity due of $900 each quarter for 8 1/2 years at 11%, compounded quarterly .
$600 is deposited at the beginning of each month in an account that earns 4.8% interest,...
$600 is deposited at the beginning of each month in an account that earns 4.8% interest, compounded monthly. How long will it take until the value of the account is $150,000?
$10,000 is deposited into a savings account that earns 3% per annum compounded quarterly. (a) How...
$10,000 is deposited into a savings account that earns 3% per annum compounded quarterly. (a) How much interest will be credited in the second month? (b) How much interest will be credited in the second year?
If $9000 is deposited at the end of each half year in an account that earns...
If $9000 is deposited at the end of each half year in an account that earns 6.1% compounded semiannually, after how many half years will the account contain $130,000? (Round your answer UP to the nearest half year.) half years=
If $7000 is deposited at the end of each half year in an account that earns...
If $7000 is deposited at the end of each half year in an account that earns 6.1% compounded semiannually, after how many half years will the account contain $120,000? (Round your answer UP to the nearest half year.)
$3,500 is deposited at the end of each quarter in an account that earns 6% compounded...
$3,500 is deposited at the end of each quarter in an account that earns 6% compounded quarterly until $100,000 has accumulated in the account. This scenario describes the  ---Select--- Future Value of an Annuity Due Future Value of an Ordinary Annuity . From the formula in the textbook, all values are known, except for  ? R S i n . After how many quarters will the account contain $100,000? (Round your answer UP to the nearest quarter.)
If $3500 is deposited at the end of each quarter in an account that earns 4%...
If $3500 is deposited at the end of each quarter in an account that earns 4% compounded quarterly, after how many quarters will the account contain $80,000? (Round your answer UP to the nearest quarter.)
If $4000 is deposited at the end of each half year in an account that earns...
If $4000 is deposited at the end of each half year in an account that earns 6.1% compounded semiannually, how long will it be before the account contains $100,000? (Round your answer to one decimal place.)
If $3000 is deposited at the end of each half year in an account that earns...
If $3000 is deposited at the end of each half year in an account that earns 6.4% compounded semiannually, how long will it be before the account contains $120,000? (Round your answer to one decimal place.) yr -
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT