4. Consider the following situation:

Payments of $100 every month for 5 years are deposited to a savings account. If interest is earned 2% compounded monthly, how much is saved in 5 years?

What type of problem is this?

1. Consider the following situation:

   Payments of $100 every month for 5 years are deposited to a savings account. If interest is earned 2% compounded monthly, how much is saved in 5 years?

   What type of problem is this?

   		Future Value
   		Present Value

2. Consider the following situation:

   Payments of $100 every month for 5 years are to pay off a loan. If interest is earned 2% compounded monthly, how much the loan for?

   What type of problem is 

   5. Consider the following situation:

   Payments of $100 every month for 5 years are to pay off a loan. If interest is earned 2% compounded monthly, how much the loan for?

   What type of problem is this?

   n

   		Present Value
   		Future Value

1. What variable is treated the same in the annuity and compound interest formulas? Read the statements below and select the one that is t

   6. What variable is treated the same in the annuity and compound interest formulas? Read the statements below and select the one that is true.n

   		i: we still need to know how much interest is gained each period.
   		FV/PV: We are still going to be dealing with a present value and future value in every problem.
   		n: both n values represent the number compound of compound periods.

Answer rating: 100% (QA)

4 Future value The future value of an annuity is the total value of payme... View the full answer