Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $15 at the end of each month from his paper route collections. Matt is 12 years old and will use the money when he goes to college in 6 years. What will be the value of Matt's account in 6 years with his monthly payments if he is earning 4% (APR), 8% (APR), or 13% (APR)? What will be the value of Matt's account in 6 years with his monthly payments if he is earning 4% (APR)?

Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $15 at the end of each month from his paper route collections. Matt is 12 years old and will use the money when he goes to college in 6 years. What will be the value of Matt's account in 6 years with his monthly payments if he is earning 4% (APR), 8% (APR), or 13% (APR)? What will be the value of Matt's account in 6 years with his monthly payments if he is earning 4% (APR)?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $18 at the end of each month from his paper route collections. Matt is 12 years old and will use the money when he goes to college in 6 years. What will be the value of Matt's account in 6 years with his monthly payments if he is earning 5% (APR), 9.5% (APR), or 14.5% (APR)? What will be the value of Matt's account in 6 years with his monthly payments if he is earning 5% (APR)? $nothing (Round to the nearest cent.)
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