Assume you deposit $4,400 at the end of each year into an account paying 10.5 percent interest. a.How much money will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b.How much will you have if you make deposits for 48 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answered: Assume you deposit $4,400 at the end of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Assume you deposit $4,400 at the end of each year into an account paying 10.5 percent interest.

a.	How much money will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	How much will you have if you make deposits for 48 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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The fixed periodic regular payments/deposits made at each periodic interval are recognized as annuity payments. The payment made at the period's end is the ordinary annuity and the one made in the beginning is the annuity due. The current worth of all the annuity payments made is the annuity's present value and their accumulated worth is the annuity's future value.

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