Question

To save for her newborn son's college education, Lea Wilson will invest $23,000 at the beginning of each year for the next 12 years. The interest rate is 9 percent. What is the future value? Use Appendix C to calculate the answer.

Multiple Choice

• $504,919.

• $64,699.

• $477,410.

• $527,919.

Answer 1

Time	Opening Balance	Deposit	Total Balance	Interest	Closing Balance
1.00	-	23,000.00	23,000.00	2,070.00	25,070.00
2.00	25,070.00	23,000.00	48,070.00	4,326.30	52,396.30
3.00	52,396.30	23,000.00	75,396.30	6,785.67	82,181.97
4.00	82,181.97	23,000.00	105,181.97	9,466.38	114,648.34
5.00	114,648.34	23,000.00	137,648.34	12,388.35	150,036.69
6.00	150,036.69	23,000.00	173,036.69	15,573.30	188,610.00
7.00	188,610.00	23,000.00	211,610.00	19,044.90	230,654.90
8.00	230,654.90	23,000.00	253,654.90	22,828.94	276,483.84
9.00	276,483.84	23,000.00	299,483.84	26,953.55	326,437.38
10.00	326,437.38	23,000.00	349,437.38	31,449.36	380,886.75
11.00	380,886.75	23,000.00	403,886.75	36,349.81	440,236.56
12.00	440,236.56	23,000.00	463,236.56	41,691.29	504,927.85
Answer is $504,919.
Since you have not given appendix c I have calculated by simple table