17. Gloria is saving $4,000 in a savings account that earns an interest rate of 3.1%compounded annually. Which equation should Gloria use to determine how muchmoney will be in her account after 5 years?A. APY = (1+)" – 1D. F = P(1+r·t)В. АРY 3D e —1E. F = Pert)(n-t)c. F= P (1+)

The future value is the future worth of the amount that will be paid or received in the future.

Answered: 17. Gloria is saving $4,000 in a…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 10PROB

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You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.

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17. Gloria is saving $4,000 in a savings account that earns an interest rate of 3.1% compounded annually. Which equation should Gloria use to determine how much money will be in her account after 5 years? A. APY = (1+)" – 1 D. F = P(1+r·t) B. APY = e" – 1 E. F= Pe(rt) (n-t) C. F = P(1+=)