On January 1, you deposited $6,400 in an investment account. The account will ea

Question

On January 1, you deposited $6,400 in an investment account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. (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.) Required 1. What will be the balance in the account at the end of 10 years? (Round your final answer to the nearest whole dollar amount.) Table or Calulator Function Future Value of $1 Present Value: 6,400 n= 8.001 % Future Value: 2. What is the interest for the 10 years? (Round your final answer to the nearest whole dollar amount.) Interest How much interest revenue did the fund earn in the first year? the second year? (Round your final answer to the nearest whole dollar amount.) 3. Interest Revenue First Year Second Year

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Table or calculator function                           2.1589 Present Value                       6,400.00 n =                               10.00 I =   8% Future Value = 6400 *2.1589                     13,817.12 2) Interest = 13,817.12 - 6400                       7,417.12 Interest Revenue 3) First year = 6400 * 8%                           512.00 Second Year = (6400+512)*8%                           552.96

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