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ou deposit $8,800 of your high school graduation gift money into a savings accou

ID: 2703893 • Letter: O

Question

ou deposit $8,800 of your high school graduation gift money into a savings account.     
   

How much will it be worth when you graduate from med school in seven years if interest rates are 6.50%? (Round your answer to 2 decimal places.)

How much will it be worth when you graduate from med school in seven years if interest rates are 8.50%? (Round your answer to 2 decimal places.)

How much will it be worth when you graduate from med school in seven years if interest rates are 9.50%? (Round your answer to 2 decimal places.)

a.

How much will it be worth when you graduate from med school in seven years if interest rates are 6.50%? (Round your answer to 2 decimal places.)

ou deposit $8,800 of your high school graduation gift money into a savings account. How much will it be worth when you graduate from med school in seven years if interest rates are 6.50%? (Round your answer to 2 decimal places.) How much will it be worth when you graduate from med school in seven years if interest rates are 8.50%? (Round your answer to 2 decimal places.) How much will it be worth when you graduate from med school in seven years if interest rates are 9.50%? (Round your answer to 2 decimal places.)

Explanation / Answer

a)

FV = 8000*1.065^7 = $12431.89

b)

FV = 8000*1.085^7 = $14161.14

c)

FV = 8000*1.095^7 = $15100.41