You plan to deposit $5,400 at the end of each of the next 15 years into an accou

Question

You plan to deposit $5,400 at the end of each of the next 15 years into an account paying 11.3 percent interest. How much will you have in your account if you make deposits for 15 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g 32.16.) a. b. How much will you have if you make deposits for 30 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a Future value of 15 deposits b. Future value of 30 deposits

Explanation / Answer

Assuming interest rate is compounded annually; Future Value=Present value (((1+r/n)^(nt)-1)÷(r/n))

a) FV=5400(((1+0.113/180)^(180)-1)÷(0.113/180)=USD 26904.27

b) FV=5400(((1+0.113/360)^(360)-1)÷(0.113/360)=USD 134044.40

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