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nexus9112 [7]
2 years ago
10

Sandra wants to deposit $100 each year for her son. if she places it in an investment account that averages a 5% annual return,

what amount will be in the account in 20 years? How much will she have if the account earns 8% a year?
Business
1 answer:
stepan [7]2 years ago
4 0

If Interest rate = 5%

Using Financial calculator

Payments (PMT) = 100

Interest (I/Y) = 5%

Number of Years (N) = 20

[N = 20 ; I/Y = 5% ; PV = 0 ; PMT = 100 ; FV = ?]

Compute for FV

Future value = 100 * 33.0660

Future value = $3,306.60

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