Homework Answers
Option 1
Annual deposit amount = $48,000
Time period (n) = 4 years
Interest rate (i%) = 6%
Accumulated investment amount = Annual deposit amount x Future value ordinary annuity factor (i%, n)
= 48,000 x Future value ordinary annuity factor (6%, 4)
= 48,000 x 4.3746
= $209,980.8
Option 2
Annual deposit amount = $48,000
Time period (n) = 4 years
Interest rate (i%) = 8%
Accumulated investment amount = Annual deposit amount x Future value ordinary annuity factor (i%, n)
= 48,000 x Future value ordinary annuity factor (6%, 4)
= 48,000 x 4.5061
= $216,292.8
Option 3
Annual deposit amount = $48,000
Time period (n) = 4 years
Interest rate (i%) = 12%
Accumulated investment amount = Annual deposit amount x Future value ordinary annuity factor (i%, n)
= 48,000 x Future value ordinary annuity factor (6%, 4)
= 48,000 x 4.7793
= $229,406.4
Exact answer may slightly differ due to factor value considered.
Please ask if you have any query related to the question. Thank you
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