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7 years ago, you put $166,308 into an interest-earning account. Today it is worth $255,924. What is the effective annual interest earned on the account? Round your answer to the nearest tenth of a percent. For example, if you get 15.1 %, write 0.151.If you deposit $29,484 in an account that earns 9% per year, compounded annually. What would be the balance in the account at the end of 38 years?

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Answer #1

A: Using financial calculator
Input:

FV= 255924,

PV= -166308

N=7

Find I/Y as 6.35%

Also in excel using rate formula

B: Input:

PV= -29484

I/Y = 9%

N=38

Find FV as $779,459.09

Also in excel using FV formula

Excel workings

AutoSave Book1 Excel (Product Activation Failed) Sign in File Insert Page Layout Formulas Data Review View Help Tell me what you want to do Home Share Calibri Currency 、. Sort & Find & Editing Paste . 녀 . 의 _ . 로三들經垣臣 Merge & Center-5 . % , Conditional Fornat as Cell Insert Delete Fornat FormattingTable Styles- : Filter Select Clipboard Alignment Number Styles Cells F10 xFV(9%,38,,-29484) 4 RATE(7,-166308,255924) 10 FV(996, 38,-29484) 12 13 14 15 16 17 Sheet1 Ready + 100 cENG 209 AM

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