Alexandra plans to deposit $1,000 into a fund at the end of each of the next...

70.2K

Verified Solution

Question

Finance

Alexandra plans to deposit $1,000 into a fund at the end of eachof the next eight years. If her fund earns 4.75 percent compoundedannually, how much will she have at the end of eight years?
A. $8,340
B. $8,525
C. $8,856
D. $9,297
E. $9,464
Randolph will receive a 20-year annuity with annual payments of$150. The first payment will be received at the end of Year 1, andthe last payment will be received at the end of Year 20. Randolphwill invest each payment in an account that pays 8.25 percent. Whatwill be the value in his account at the end of Year 30?
A. $16,631
B. $15,593
C. $14,175
D. $13,340
E. $18,034
Boris makes monthly payments of $175 into a fund at the end ofeach month for the next eight years. The
fund pays an annual interest rate of 7.5 percent (compoundedmonthly). If he continues to hold the money in
the account for an additional four years, what will be the value inhis account at the end of Year 12?
A. $22,924
B. $29,427
C. $30,598
D. $30,915
E. $40,676

Answer & Explanation Solved by verified expert

4.2 Ratings (826 Votes)

Question 1st This is the question of future value of an annuity Future value of annuity Annuity amountFV factor of annuity FV Factor of annuity1rn1r 10475810475 449550475 94642 Future value of annuity See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Alexandra plans to deposit $1,000 into a fund at the end of eachof the next eight years. If her fund earns 4.75 percent compoundedannually, how much will she have at the end of eight years?A. $8,340B. $8,525C. $8,856D. $9,297E. $9,464Randolph will receive a 20-year annuity with annual payments of$150. The first payment will be received at the end of Year 1, andthe last payment will be received at the end of Year 20. Randolphwill invest each payment in an account that pays 8.25 percent. Whatwill be the value in his account at the end of Year 30?A. $16,631B. $15,593C. $14,175D. $13,340E. $18,034Boris makes monthly payments of $175 into a fund at the end ofeach month for the next eight years. Thefund pays an annual interest rate of 7.5 percent (compoundedmonthly). If he continues to hold the money inthe account for an additional four years, what will be the value inhis account at the end of Year 12?A. $22,924B. $29,427C. $30,598D. $30,915E. $40,676