Question

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Future Value Compute the future value in year 9 of a $440 deposit in year 4...

Future Value Compute the future value in year 9 of a $440 deposit in year 4 and another $240 deposit at the end of year 5 using a 9% interest rate.

Multiple Choice

  • $1,015.77

  • $1,476.89

  • $964.40

  • $1,144.40

Solutions

Expert Solution

We use the formula:  
A=P(1+r/100)^n
where   
A=future value
P=present value  
r=rate of interest
n=time period.

A=440*(1.09)^5+240*(1.09)^4

which is equal to

=$1015.77(Approx)

jeff jeffy answered 1 year ago
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