Question

DO Time Left:0:42:28 Elizabeth Roman Zuniga: Attempt 4 Question 3 (2 points) If you deposit $18,000 per year for 16 years (each deposit is made at the end of each year) in an account that pays an annual interest rate of 8%, what will your account be worth at the end of 16 years? $589,504.06 $159,324.64 O $172,070.62 $545,837.09 $426,231.82 Question 4 (2 points) If you deposit $16,000 per year for 11 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 10%, what will your account be worth at the end of 11 years? $326,148.54

Answer 1

Annual deposit = $18,000

Time period (n) = 16 years

Interest rate (i) = 8%

Amount after 16 years = Annual deposit x Future value annuity factor (i%, n)

= 18,000 x Future value annuity factor (8%, 16)

= 18,000 x 30.3243

= $545,837.09

Fourth option is correct option.

Note: Exact answer may slightly differ due to rounding off and factor value considered

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