At the end of every year you deposit $2,000 into an account that earns 7% interest per year.

At the end of every year you deposit $2,000 into an account that earns 7% interest per year. What will be the balance in your account immediately after the 30^th deposit?

Expert Solution

Future value of an ordinary annuity = P{[(1 + r)^n - 1] / r}

Future value of an ordinary annuity = $2,000{[(1 + 0.07)^30 - 1] / 0.07}

Future value of an ordinary annuity = $188,921.57

jeff jeffy answered 2 years ago

At the end of every year you deposit $2,000 into an account that earns 6% interest...

At the end of every year you deposit $2,000 into an account that earns 6% interest per year. What will be the balance in your account immediately after the 30th deposit?

At the end of every year you deposit $2,000 into an account that earns 8% interest...

At the end of every year you deposit $2,000 into an account that earns 8% interest per year. What will be the balance in your account immediately after the 30th deposit?

If you deposit $2,000 at the end of each year into an IRA account that is...

If you deposit $2,000 at the end of each year into an IRA account that is expected to earn 8% per year simple interest, how much will be in the account in 30 years? (Answer to the nearest dollar)

Compute the future value at the end of year five (5) of a $2,000 deposit at the end of year one (1) and another $2,000 deposit at the end of year two (2) using a seven (7) percent interest rate per year.

Compute the future value at the end of year five (5) of a $2,000 deposit at the end of year one (1) and another $2,000 deposit at the end of year two (2) using a seven (7) percent interest rate per year.Group of answer choicesA. $5,071.68B. $2,805.10C. $5,426.70D. $4,739.89E. $2,621.59

You deposit $5,000 into an account at the end of year 0. You deposit $5,000 every...

You deposit $5,000 into an account at the end of year 0. You deposit $5,000 every three (3) months beginning at the end of year 1 and continuing through the end of year 3. You also deposit into the account an amount X starting at the end of year 6 and repeat it every three (3) months for a total of four (4) deposits. You withdraw $112,160 at the end of year 7. After the withdrawal at the end of...

Scenario: You make a $2,000 deposit to a retirement account today. The account earns a 7.65%...

Scenario: You make a $2,000 deposit to a retirement account today. The account earns a 7.65% rate of interest (i.e. APR) compounded quarterly. What is the value of the investment in 6 years? Scenario: Suppose you want to take out a $150,000 semi annual loan from a bank. The maximum semi-annual payment you can afford is 7,000. The market interest rates are 7.90 APR. Under these conditions, what would the term of this loan be? (round answer to the nearest...

Compute the present value of a $1,000 deposit at end of year two (2) and another $2,000 deposit at the end of year five (5) if interest rates are seven (7) percent per year.

Compute the present value of a $1,000 deposit at end of year two (2) and another $2,000 deposit at the end of year five (5) if interest rates are seven (7) percent per year.Group of answer choicesA. $2,632.60B. $1,525.79C. $934.58D. $2,299.41E. $2,460.37

If you deposit $82,000 in an interest bearing account that earns you 2.9% annual interest (compounded...

If you deposit $82,000 in an interest bearing account that earns you 2.9% annual interest (compounded annually) in the first 4 years, 2.1% annual interest (compounded annually) for the next 4 years and 7.7% annual interest (compounded annually) for the following 4 years, how much money will you have at the after these 3 interest periods?

Derek will deposit $5,678.00 per year for 15.00 years into an account that earns 13.00%, The...

Derek will deposit $5,678.00 per year for 15.00 years into an account that earns 13.00%, The first deposit is made next year. He has $10,763.00 in his account today. How much will be in the account 38.00 years from today? Answer format: Currency: Round to: 2 decimal places.

Derek will deposit $4,355.00 per year for 30.00 years into an account that earns 9.00%, The...

Derek will deposit $4,355.00 per year for 30.00 years into an account that earns 9.00%, The first deposit is made next year. How much will be in the account 45.00 years from today?

Question