need the answers for 4.5%, 8.5% and 13% thanks! estión Help Future value with pe

Question

need the answers for 4.5%, 8.5% and 13%

thanks!

estión Help Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $45 at the end of each quarter from his paper route collections. Matt is 11 years old and will use the money when he goes to college in 7 years. What will be the value of Matt's account in 7 years with his quarterly payments if he is earning 45% (APR), 8.5% (APR), or 13% (APR)? What will be the value of Matt's accountin 7 years with his quarterly payments if he is earning 4.5% (APR)? Round to the nearest cent,)

Explanation / Answer

Part A:

PMT = 45

Number of Quarters = 7 * 4 = 28

Quarterly rate = 4.5%/ 4 = 1.125%

PV = 0

Using Financial Calculator:

FV = 1,471.41

Part B:

PMT = 45

Number of Quarters = 7 * 4 = 28

Quarterly rate = 8.5%/ 4 = 2.125%

PV = 0

Using Financial Calculator:

FV = 1,697.85

Part C:

PMT = 45

Number of Quarters = 7 * 4 = 28

Quarterly rate = 13%/ 4 = 3.25%

PV = 0

Using Financial Calculator:

FV = 2,005.78

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