What amount would you have if you deposited $2,700 a year for 25 years at 8 percent (compounded annually)? (Round discount factor to 3 decimal places and final answer to the nearest whole dollar.)
Added by Paula M.
Step 1
Future Value = Payment * ((1 + interest rate)^number of periods - 1) / interest rate Future Value = $2,700 * ((1 + 0.08)^25 - 1) / 0.08 Future Value = $2,700 * (10.063 - 1) / 0.08 Future Value = $2,700 * 9.063 / 0.08 Future Value = $2,700 * 113.2875 Future Value Show more…
Show all steps
Close
Your feedback will help us improve your experience
Kathleen Carty and 85 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
You put $500 in an interest bearing account with an annual interest rate of 8% compounded quarterly. How much money will be in the account after 2.5 years? Give your answer in dollars rounded to the nearest penny.
Kathleen C.
You would like to have $10,000 in an account after eight years time. If the account earns 2.5% compounded interest yearly, how much would you have to deposit today
Victor S.
How much money needs to be invested now to obtain 4100 in 8 years if the interest rate in a savings account is 0.25%, compounded continuously? Round your answer to the nearest cent.
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD