In 1986, a family member invested $100 each month into a savings account with an interest rate of 0.25% (that didn't change). In 2016, you decided you needed to use that saved up money for a big purchase, so you cash the savings account out. How much money should be in the account using the FV formula? If your family put the $105 each month instead of just the $100, how much extra would be in the account compared to the total value from the first part? If you were to invest $200 each month, what would your savings account have in 2016?
In 1986, a family member invested $100 each month into a savings account with an interest rate of 0.25% (that didn't change). In 2016, you decided you needed to use that saved up money for a big purchase, so you cash the savings account out. How much money should be in the account using the FV formula? If your family put the $105 each month instead of just the $100, how much extra would be in the account compared to the total value from the first part? If you were to invest $200 each month, what would your savings account have in 2016?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 2FPE
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In 1986, a family member invested $100 each month into a savings account with an interest rate of 0.25% (that didn't change). In 2016, you decided you needed to use that saved up money for a big purchase, so you cash the savings account out.
How much money should be in the account using the FV formula?
If your family put the $105 each month instead of just the $100, how much extra would be in the account compared to the total value from the first part?
If you were to invest $200 each month, what would your savings account have in 2016?
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