Determine the amount of money in a savings account at the end of 10 years, given...

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Question

Determine the amount of money in a savings account at the end of 10 years, given...

Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $5,500 and a 12 percent annual interest rate when interest is compounded

(a) annually,

(b) semiannually, and

(c) quarterly.

Include financial calculator steps, including the keys pressed on the calculator to solve each step of the question.

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Answer 1

Answer #1

a.

PV = -5500

I/Y = 12

N = 10

PMT = 0

CPT -> FV

FV = 17082.17 Answer

b.

PV = -5500

I/Y = 12/2 = 6%

N = 10 *2 = 20

PMT = 0

CPT -> FV

FV = 17639.25 Answer

c.

PV = -5500

I/Y = 12/4 =3%

N = 10 *4 =40

PMT = 0

CPT -> FV

FV = 17941.21 Answer

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Answer 2

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Determine the amount of money in a savings account at the end of 10 years, given...

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