Question

334 points On each December 31, you plan to transfer $2.200 from your checking account into an investment account. The investment account will earn 4 percent annual Interest, which will be added to the account balance at each year-end. The first deposit will be made December 31, 2018 (at the end of the period). (Future Value of $1. Present Value of $1. Future Value Annulty of $1. Present Value Annuity of $0 (Use appropriate factor(s) from the tables provided.) Required: 1. What will be the balance in the account at the end of the 10th year (le, 10 deposits)? 2. What is the total amount of interest earned on the 10 deposits? 3. How much Interest revenue did the fund earn in 2019 2020? Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 What will be the balance in the account at the end of the 10th year (le, 10 deposits)? (Round "Future Value" to nearest whole dollar amount.) Table or Calculator Function Annuity payments Required 2 >

Answer 1

Answer:

	able or Calculator Function:	Future Value of $1
Annuity payments:		2200
n=		10
i =		4%
Future Value:		$26,413.44
Future Value= Cash flow per period ((((1+i)^n -1))/i)
=2200*((((1.04)^10-1))/0.04)
$26413.44
Future Value= $26413.44
Interest= 26413.44-(2200*10)=$4,413.44
Interest 2019=2200*4%= $88
Interest 2020= (2200+88+2200)*4%=$179.52