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iogann1982 [59]
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 $1,760 in her local bank, which pays her 8% annual interest. Luana decides that she will continue to do this for the next four years. Luana’s savings are an example of an annuity. How much will she save by the end of four years? $7,930.76 $6,741.15 $5,829.34 $8,565.22
Business
1 answer:
kramer3 years ago
5 0

Answer:

FV= $7,930.76

Explanation:

Giving the following information:

Annual deposit= $1,760

Annual interest rate= 8%

Number of periods= 4 years

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1,760*[(1.08^4) - 1]} / 0.08

FV= $7,930.76

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Answer:

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Answer:

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Explanation:

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According to Smith, buyers and sellers interactions act as an "invisible hand" arranging proper levels of competition between businesses and promoting the best interest of societies.

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