Matt Johnson delivers newspapers and is putting away $15 at the end of each month from his paper route collections. Matt is 9 years old and will use the money when he goes to college in 9 years. What will be the value of Matt's account in 9 years with his monthly payments if he is earning 5.5% (APR), 9% (APR), or 14% (APR)?

Matt Johnson delivers newspapers and is putting away $15 at the end of each month from his paper route collections. Matt is 9 years old and will use the money when he goes to college in 9 years. What will be the value of Matt's account in 9 years with his monthly payments if he is earning 5.5% (APR), 9% (APR), or 14% (APR)?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 5CE

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Question

Future value with periodic

rates.

Matt Johnson delivers newspapers and is putting away

$15

at the end of each

month

from his paper route collections. Matt is

years old and will use the money when he goes to college in

years. What will be the value of Matt's account in

years with his

monthly

payments if he is earning

5.5%

(APR),

(APR), or

14%

(APR)?

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