Question

In: Finance

You invest 800$ per year at the beginning of each year for 8 years at an...

You invest 800$ per year at the beginning of each year for 8 years at an interest rate of 8% the future value of your koney will be equal to approximately

A 9190
B 18508
C 18989
D none of the above

Solutions

Expert Solution

Total Year of loans = 8 Years
Interest rate = 8% Per Annum
CALCULATION OF THE FUTURE VALUE OF THE INVESTMENT
Years PAYMENTS INTEREST @ 8%   CUMULATIVE BAL. Remarks
1                                       800.00                           64.00                           864.0 (Payments +Interest)
2                                       800.00                         133.12                       1,797.1 (Opning Bal +Investmet) + Interest
3                                       800.00                         207.77                       2,804.9 (Opning Bal +Investmet) + Interest
4                                       800.00                         288.39                       3,893.3 (Opning Bal +Investmet) + Interest
5                                       800.00                         375.46                       5,068.7 (Opning Bal +Investmet) + Interest
6                                       800.00                         469.50                       6,338.2 (Opning Bal +Investmet) + Interest
7                                       800.00                         571.06                       7,709.3 (Opning Bal +Investmet) + Interest
8                                       800.00                         680.74                       9,190.0 (Opning Bal +Investmet) + Interest
So , As per the above
Answer = Option A = $ 9190

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