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To save for her newborn son's college education, Lea Wilson will invest $23,000 at the beginning...

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Finance

To save for her newborn son's college education, Lea Wilson willinvest $23,000 at the beginning of each year for the next 12 years.The interest rate is 9 percent. What is the future value? UseAppendix C to calculate the answer.

Multiple Choice

  • $504,919.

  • $64,699.

  • $477,410.

  • $527,919.

Answer & Explanation Solved by verified expert
3.8 Ratings (730 Votes)

Time Opening Balance Deposit Total Balance Interest Closing Balance
                                                                  1.00                         -                23,000.00                 23,000.00                2,070.00             25,070.00
                                                                  2.00          25,070.00              23,000.00                 48,070.00                4,326.30             52,396.30
                                                                  3.00          52,396.30              23,000.00                 75,396.30                6,785.67             82,181.97
                                                                  4.00          82,181.97              23,000.00               105,181.97                9,466.38          114,648.34
                                                                  5.00       114,648.34              23,000.00               137,648.34              12,388.35          150,036.69
                                                                  6.00       150,036.69              23,000.00               173,036.69              15,573.30          188,610.00
                                                                  7.00       188,610.00              23,000.00               211,610.00              19,044.90          230,654.90
                                                                  8.00       230,654.90              23,000.00               253,654.90              22,828.94          276,483.84
                                                                  9.00       276,483.84              23,000.00               299,483.84              26,953.55          326,437.38
                                                                10.00       326,437.38              23,000.00               349,437.38              31,449.36          380,886.75
                                                                11.00       380,886.75              23,000.00               403,886.75              36,349.81          440,236.56
                                                                12.00       440,236.56              23,000.00               463,236.56              41,691.29          504,927.85
Answer is $504,919.
Since you have not given appendix c I have calculated by simple table

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Transcribed Image Text

To save for her newborn son's college education, Lea Wilson willinvest $23,000 at the beginning of each year for the next 12 years.The interest rate is 9 percent. What is the future value? UseAppendix C to calculate the answer.Multiple Choice$504,919.$64,699.$477,410.$527,919.

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