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antiseptic1488 [7]
3 years ago
6

Luana loves shopping for clothes, but considering the state of the economy, she has decided to start saving. At the end of each

year, she will deposit $570 in her local bank, which pays her 6% annual interest. Luana decides that she will continue to do this for the next four years. Luana savings are an example of an annuity. How much will she save by the end of four years?
Business
1 answer:
Zina [86]3 years ago
6 0

Answer:

Luana will save $2,493.522

Explanation:

Given:

Luana will deposit $570 every year for 4 years. This is an annuity as same amount is deposited every year.

Rate is 6% or 0.06

We have to compute Luana's savings at the end of 4th year.

Refer future value of annuity factor table at 6%, 4th year. Annuity factor is 4.3746.

Savings = Yearly deposit × Annuity factor

             = 570 × 4.3746

             = $2,493.522

Therefore, Luana will save $2,493.522 by the end of 4 years.

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8 0
3 years ago
Karl Marx's economic theories resulted in which global change?
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You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments wi
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Answer:

Present value= $3,642,651.54

Explanation:

Giving the following information:

You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.

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