3a: Assume you deposit $4,800 at the end of each year into an account paying 11.
ID: 2705193 • Letter: 3
Question
3a:
Assume you deposit $4,800 at the end of each year into an account paying 11.5 percent interest.
How much money will you have in the account in 25 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
How much will you have if you make deposits for 50 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Requirement 1:How much money will you have in the account in 25 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Explanation / Answer
F = A/r [(1+r)^n-1]
a) F = 4800/0.115 * [ (1.115)^25-1] = 592736.69
b) F = 4800/0.115 * [ (1.115)^50-1] = 9602917.40
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