se starting this year you decide to make deposits of $5,000 at the end of each year for the next five years in a bank account paying 10% interest. If you currently have $3,000 in the account how much will you have at the end of five years? 1. $25,255.05 2. $36,742.22 3. $35,357.03 4. $30,272.35 5. $28,500.60
se starting this year you decide to make deposits of $5,000 at the end of each year for the next five years in a bank account paying 10% interest. If you currently have $3,000 in the account how much will you have at the end of five years? 1. $25,255.05 2. $36,742.22 3. $35,357.03 4. $30,272.35 5. $28,500.60
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
19,
Suppose starting this year you decide to make deposits of $5,000 at the end of each year for the next five years in a bank account paying 10% interest. If you currently have $3,000 in the account how much will you have at the end of five years?
| 1. |
$25,255.05 |
|
| 2. |
$36,742.22 |
|
| 3. |
$35,357.03 |
|
| 4. |
$30,272.35 |
|
| 5. |
$28,500.60 |
Expert Solution
Step 1
Future value of amount increases with the amount being deposited and amount being deposited over the period of deposit being made.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education