Question

Andrew and Emma Garfield invested $5,800 in a savings account paying 7% annual interest when their daughter, Angela, was born. They also deposited $1,600 on each of her birthdays until she was 17 (including her 17th birthday).

Click here to view the factor table.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

How much was in the savings account on her 17th birthday (after the last deposit)? (Round answer to 2 decimal places, e.g. 25.25.)

Amount on 17th birthday

$

Answer 1

		Calculation of amount in savings account on her 17th birthday
	a	Initial Amount Deposited	$                    5,800.00
	b	FV factor (7%,17 Years)	$                            3.16
	c	Future value of initial Deposit (a*b)	$                  18,321.13
	d	Annual Deposit	$                    1,600.00
	e	FV Annuity Factor (7%,16 Years)	$                          30.84
	f	Future Value Of Annual Deposit (d*e)	$                  49,344.35
	g	Amount to be in saving account (c+f)	$                  67,665.48