Question

CENGAGE | MINDTAP Q Search this Chapter 4 Assignment Back to Assignment Attempts: Average: /3 ED 2. Future value of annuities I alog To compute the value of an annuity due, multiply the value of the ordinary annulty by ers You are planning to put $3,500 in the bank at the end of each year for the next eight years in hopes that you will have enough money for a new boat. If you are investing at an annual interest rate of 9%, how much money will you have at the end of eight years-rounded to the nearest whole dollar? ms O $30,880 cess O $42,074 ter O $38,600 E UNLIMITED DS IN 6 DAYS O $46,320 E NOW You've decided to deposit vour money in the bank at the beginning of the year instead of the end of the year, but now you are making payments of money will you have available at the end of eight years-rounded to the nearest whole dollar? $3.500 at an annual interest rate of 9%. How much more access to your O $29,452 se(s) after your nds O $42,074 O $58,904 O $38,600 ack Seve & Continue Grade Now Continue without saving Peok Air

Answer 1

Answer 2(a):

Correct answer is:

$38,600

Explanation:

Annual deposit at the end of each year = $3,500

Interest rate = 9%

Number of years = 8

FV = FV (rate, nper, pmt, pv, type) = FV (9%, 8, -3500, 0, 0) = $38,600

Hence option C is correct and other options A, B and D are incorrect.

Answer 2(a):

Correct answer is:

$42,074

Explanation:

Annual deposit at the beginning of each year = $3,500

Interest rate = 9%

Number of years = 8

FV = FV (rate, nper, pmt, pv, type) = FV (9%, 8, -3500, 0, 1) = $42,074

Hence option B is correct and other options A, C and D are incorrect.