What is the future value of an annual deposit of $800 earning 6 percent for 15 years
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Answer:
The amount of money due to Beth-Ann at the end of this period is $27, 300.
Step-by-step explanation:
The amount at the end of a period, when simple interest is being charged is:
Amount (A) = Principal (P) + Interest (I)
Here interest is computed using the formula:
It is provided that:
P = 24,000
R = 11%
T = 15 months = 1.25 years
Compute the Interest as follows:
The interest earned is, <em>I</em> = $3,300.
Compute the amount of money due to Beth-Ann at the end of this period as follows:
Thus, the amount of money due to Beth-Ann at the end of this period is $27, 300.