On January 1, 2016, you deposited $6,400 in a savings account. The account will earn 10...

On January 1, 2016, you deposited $6,400 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answers to 2 decimal places.) 2. What is the total interest for the 7 years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answers to 2 decimal places.) 3. How much interest revenue did the fund earn in 2016 and in 2017? (Round your final answers to 2 decimal places.)

Expert Solution

Requirement 1

Deposit amount at Jan 1 2016	$ 6,400.00
Future value Factor	1.9487
Net future value	$ 12,471.68

If answer do not match then use the factor given in the table provided to you

Requirement 2

Schedule of Future Value
Year	Beginning Balance	Interest earned during year	Ending balance
2016	$ 6,400.00	$ 640.00	$ 7,040.00
2017	$ 7,040.00	$ 704.00	$ 7,744.00
2018	$ 7,744.00	$ 774.40	$ 8,518.40
2019	$ 8,518.40	$ 851.84	$ 9,370.24
2020	$ 9,370.24	$ 937.02	$ 10,307.26
2021	$ 10,307.26	$ 1,030.73	$ 11,337.99
2022	$ 11,337.99	$ 1,133.80	$ 12,471.79
Future value		$ 6,071.79	$ 12,471.79

Total Interest =$6071.79

.

Requirement 3

Interest in 2016=$640.00

Interest in 2017 704.00

ekkarill92 answered 2 years ago

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