7. 100 points On January 1, 2016, you deposited $6,400 in a savings account. The

Question

7. 100 points On January 1, 2016, you deposited $6,400 in a savings account. The account will earn 9 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 3 years? (Future Value of $1, Present Value of $1, Future Value Annuilty of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answers to 2 decimal places.) ance in the Account 2. What is the total interest for the 3 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.) Interest 3. How much interest revenue did the fund eam in 2016 and in 2017? (Round your final answers to 2 decimal places.) 2016 Interest Revenue 2017 Interest Revenuc

Explanation / Answer

1.Balance in the savings account at the end of 3 Years

= $6,400 x1.09 x 1.09 x 1.09

= $8,288.19

2.Total Interest for the 3 Years

= $8,288.19 - $6,400

= $1,888.19

3.Interest Revenue earned in 2016 and 2017

In 2016 = ($6400*1.09) - $6400

             = $6976 - $6400

             = $576

In 2017 = ($6400*1.09*1.09) - $6976

          = $7603.84 - $6976

             = $627.84

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