Determine how much $1,000 deposited in a savings account paying 8% (compounded annually) will be worth...

Determine how much $1,000 deposited in a savings account paying 8% (compounded annually) will be worth after 5 years.

how would you insert this in a financial calculator? confused on how to input (FVIF .08,5)

Expert Solution

Calculate for FV in a financial cal, punch in:

N=5

I/Y =0.08

PV =1000

The answer will come as 1469.33

You cannot enter FVIF(.08,5), you have to look at the future value factor in a future value table of $1, at 8% and at year 5, the FVIF is 1.4693

So the future value will become:

=PResent value*FVIF(.08, 5 years)

=1000*1.4693

=1469.30

Both the table method and financial calculator almost gives the same answer, but the financial calculator method is precise.

jeff jeffy answered 2 years ago

On January 1, $5000 is deposited into a high-interest savings account that pays 8% interest compounded annually.

On January 1, $5000 is deposited into a high-interest savings account that pays 8% interest compounded annually. If all the money is withdrawn in 5 equal end-of-year sums beginning December 31 of the first year, how much will each withdrawal be?

Your savings account is currently worth $5,000. The account pays 2.5% interest compounded annually . How...

Your savings account is currently worth $5,000. The account pays 2.5% interest compounded annually . How much will it be worth 3 years from now ? A) 5,543.6 B) 5,384.5 C) 5,978.9 D) 5,998.2

Josh deposited $800 in a savings account at 4.0% interest, compounded monthly. A) how much money...

Josh deposited $800 in a savings account at 4.0% interest, compounded monthly. A) how much money will josh have in his account after 4 years? B) After how many years will josh have $2000 in his account(if he does not withdraw any money)?

You deposit $1,000 in a saving account at 10% compounded annually. How much is your first...

You deposit $1,000 in a saving account at 10% compounded annually. How much is your first year interest? How much is your second year interest? 100, 100 100, 110 100, 120 100, 150

you deposit $500 today in a savings account that pays 6% interest, compounded annually. How much...

you deposit $500 today in a savings account that pays 6% interest, compounded annually. How much will your account be worth at the end of 40 years?

How much will the savings account be worth in 35 years?

Suppose you save $1,000 per month for 35 years. The bank promises you an annual interest rate of 3% compounded monthly. How much will the savings account be worth in 35 years? (Assume no withdrawals take place).

You recently inherited $10,000 and deposited the money today in an investment account paying 8% compounded...

You recently inherited $10,000 and deposited the money today in an investment account paying 8% compounded annually. Inheriting this money has motivated you to plan for the future and you have decided that you would like to have $250,000 in the bank 15 years from today. To achieve this goal, in addition to the money you have already deposited in the investment account, you plan to deposit an equal amount of money in the account each year for the next...

The sum of $5200 is deposited into an account paying 10%annually. If $ 800 is...

The sum of $5200 is deposited into an account paying 10% annually. If $ 800 is withdrawn at the end of years 1, year 2 and year 3, how much remains in the account at the end of year 3?

The sum of $5200 is deposited into an account paying 10% annually. If $ 800 is...