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A)Future value with periodic rates.  Matt Johnson delivers newspapers and is putting away ​$16 at the...

A)Future value with periodic rates.  Matt Johnson delivers newspapers and is putting away ​$16 at the end of each month from his paper route collections. Matt is 11 years old and will use the money when he goes to college in 7 years. What will be the value of​ Matt's account in 7 years with his monthly payments if he is earning 7​% ​(APR), 10 % ​(APR), or 12 % ​(APR)?

B) Savings with periodic rates.

  What investment does Patrick need to make at the end of each month into his savings account over the coming 21months to reach his vacation goal of ​$6,000.00 if he is getting 66​% APR on his​ account?

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Answer #1

A) Given,

Monthly payments (M) = $ 16

Years to college = 7 years

No. of months (n) = 7 x 12 = 84 months

Solution :-

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