Question

 Leslie​ Mosallam, who recently sold her​ Porsche, placed

​$8,400

in a savings account paying annual compound interest of

7

percent.a.  Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for

2​,

6​,

and

16

​year(s).b.  Suppose Leslie moves her money into an account that pays

9

percent or one that pays

11

percent.

Rework part

​(a​)

using

9

percent and

11

percent.

c.  What conclusions can you draw about the relationship between interest​ rates, time, and future sums from the calculations you just​ did?

a.  After placing

​$8,400

in a savings account paying annual compound interest of

7

percent​,

the amount of money that will accumulate if Leslie leaves the money in the bank for

2

​year(s) is

​$nothing.

​(Round to the nearest​ cent.)

Answer 1

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PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) Review View Add-Ins File Home Insert Page Layout Formulas Data - 2x % Cut 11 A A = = = V Wrap Text General -A E E E Merge & Center - $ % & ... Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Find & Select Alignment Number Cells Calibri E Copy Paste Format Painter BIU Clipboard Font CK672 C) ск RELATIONSHIP с см CN со СР со CR Cs ст 2 653 654 8400 7% 8400 11% 655 656 657 658 SAVINGS RATE NO OF YEARS FUTURE VALUE SAVINGS RATE NO OF YEARS FUTURE VALUE 659 9617.16 EXCEL =FV(CL655,CL656,-CL654) 10349.64 EXCEL =FV(CL655,CL656,,-CL654) 8400 SAVINGS 9% RATE NO OF YEARS 9980.04 FUTURE VALUE EXCEL =FV(CL655,CL656,,-CL654) NO OF YEARS 14087.64 FUTURE VALUE EXCEL =FV(CL655,CL659,-CL654) 16 NO OF YEARS 33350.57 FUTURE VALUE NO OF YEARS FUTURE VALUE NO OF YEARS FUTURE VALUE NO OF YEARS FUTURE VALUE 12606.13 EXCEL =FV(CL655,CL659,,-CL654) 16 24798.18 EXCEL =FV(CL655,CL662,,-CL654) 15711.48 EXCEL =FV(CL655,CL659,,-CL654) 16 44611.51 660 661 662 663 664 665 666 667 668 669 NO OF YEARS FUTURE VALUE There is a positive relationship between the interest rate used to compound a present sum and the future value of that sum. There is a positive relationship between the number of years for which the compounding continues and the future value of that sum. 670 671 672 CAP STRU VALUE profit margin loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPONPER APR CPI ear FVA pva 52 53 0 p 1 v, fv, annuity ferences: X262 STATE56 57 0 BOU 120% Rea -_- D F B * * *0 ENG 30-11-2019