A company deposits $6,000 in a bank at the end of every year for 10 years....

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Question

A company deposits $6,000 in a bank at the end of every year for 10 years....

A company deposits $6,000 in a bank at the end of every year for 10 years. The company makes no deposits during the subsequent 7 years. If the bank pays 6% interest, how much would be in the account at the end of 17 years?

business economics

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Answer 1

Answer #1

Answer

The formula is:

A=annual deposit=6000

n= number of annual deposits=10

m=deffered period or no deposit period=7

r=interest rate =6%

FV=future value =amount in the account

Using the formula and values:

The value is $118914.25

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Answer 2

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