Problem 6-7 Calculating Annuity Values [LO1] If you deposit $4,800 at the end of
ID: 2774872 • Letter: P
Question
Problem 6-7 Calculating Annuity Values [LO1] If you deposit $4,800 at the end of each of the next 15 years into an account paying 11.3 percent interest, how much money will you have in the account in 15 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value $ How much will you have if you make deposits for 30 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value $ ReferenceseBook & Resources
Explanation / Answer
1)
Future value of the deposit is as follows:
=$4,800*future value factor at 11.3% for 15 years+Interest*Future value annuity at 11.3% for 15 years
=$4,800*4.784+$528*34.405
=$41,130