A woman deposits $10,000 at the end of each year for 14 years in an account paying 7% interest compounded annually. (a) Find the final amount she will have on deposit. (b) Her brother-in-law works in a bank that pays 6% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? (c) How much would she lose over 14 years by using her brother-in-law's bank? (a) She will have a total of $ on deposit. (Simplify your answer. Round to the nearest cent as needed.).
A woman deposits $10,000 at the end of each year for 14 years in an account paying 7% interest compounded annually. (a) Find the final amount she will have on deposit. (b) Her brother-in-law works in a bank that pays 6% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? (c) How much would she lose over 14 years by using her brother-in-law's bank? (a) She will have a total of $ on deposit. (Simplify your answer. Round to the nearest cent as needed.).
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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Transcribed Image Text:A woman deposits $10,000 at the end of each year for 14 years in an account paying 7% interest
compounded annually.
(a) Find the final amount she will have on deposit.
(b) Her brother-in-law works in a bank that pays 6% compounded annually. If she deposits money in this
bank instead of the other one, how much will she have in her account?
(c) How much would she lose over 14 years by using her brother-in-law's bank?
(a) She will have a total of $ on deposit.
(Simplify your answer. Round to the nearest cent as needed.)
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