Explain well both question with paper answer. You deposit $1,600 at the end of each year into an account paying 10.1 percent interest.a. How much money will you have in the account in 22 years?Future value of 22 depositsb. How much will you have if you make deposits for 44 years?Future value of 44 deposits

The future value of an investment forecasts the expected value of an investment at a given future…

Answered: a. How much money will you have in the…

a. How much money will you have in the account in 22 years? Future value of 22 deposits b. How much will you have if you make deposits for 44 years? Future value of 44 deposits

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

Explain well both question with paper answer.

You deposit $1,600 at the end of each year into an account paying 10.1 percent interest.
a. How much money will you have in the account in 22 years?
Future value of 22 deposits
b. How much will you have if you make deposits for 44 years?
Future value of 44 deposits

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