On January 1,2016, you deposited $6,500 in a savings account. The account will e
ID: 2563063 • Letter: O
Question
On January 1,2016, you deposited $6,500 in a savings account. The account will earn 11 percent annual compound interest, which will be added to the fund balance at the end of each year Required: 1. What will be the balance in the savings account at the end of 4 years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answers to 2 decimal places.) ance in the Savings Account 2. What is the total interest for the 4 years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use ap tables provided. Round your final answers to 2 decimal places.) Total Interest 3. How much interest revenue did the fund earn in 2016 and in 2017? (Round your final answers to 2 decimal places.) 2016 Interest Revenue 2017 Interest RevenueExplanation / Answer
Amount of investment now 6,500.00 Interest rate per year 11% Time period in years 4.00 Time Opening Balance Interest Closing Balance 2016 6,500.00 715.00 7,215.00 2017 7,215.00 793.65 8,008.65 2018 8,008.65 880.95 8,889.60 2019 8,889.60 977.86 9,867.46 3,367.46 1) Balance in saving account after 4 Years 9,867.46 2) Total Interest for 4 years = 715 + 793.65 + 880.95 +977.86 3,367.46 3) 2016 715.00 2,017.00 793.65