Question

Melissa invests $37,000 today in a savings account that pays 4 percent interest compounded annually. She wants to know the total balance in her account seven years from today. Identify the correct keystrokes to be used in a financial calculator to determine the total balance.a. N = 7, I/Y = 4, PV = -37,000b. N = 7, I/Y = 4%, PV = -37,000c. N = 7, I/Y = 4, PV = 37,000d. N = 7, I/Y = 4%, PV = 37,000

Answer 1

Answer:

a. N = 7, I/Y = 4, PV = -37,000

Explanation:

In financial calculator % is already written in the calculator so we have to write only number in calculator.

Option b incorrect because it has included a number with % ( 4% ) sign that we dint do usually in calculator.

Option c is incorrect because it has taken pv as positive

Option d is incorrect because it has written 4% that we don't put in calculator as well as it has inserted positive pv which is also wrong.