Answered

Westonci.ca is the Q&A platform that connects you with experts who provide accurate and detailed answers. Get quick and reliable solutions to your questions from a community of seasoned experts on our user-friendly platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

On January 1, Alan King decided to deposit $58,800 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 8% annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required:

Sagot :

facundobuzzetti

Answer:

FV= $79,996.75

Explanation:

Giving the following information:

Initial investment (PV)= $58,800

Interest rate (i)= 8% compounded annually

Number of periods (n)= 4 years

To calculate the future value (FV), we need to use the following formula:

FV= PV*(1+i)^n

FV= 58,800*(1.08^4)

FV= $79,996.75

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.