Ch$04$ Financial Planning Exercise $7$

CBook

Chapter $4$

Financial Planning Exercise $7$

Calculating interest earned and future value of savings account

If you put $$2,000$ in a savings account that pays interest at the rate of $5$ percent, compounded annually,

a$.$ how much will you have in three years? Round the answer to the nearest cent. Round FV$-$factor to three decimal places or use the Appendix A$.($Hint: Use the future value formula.$)$ $

$10.$ how much interest will you earn during the three years? Round the answer to the nearest cent:

c$.$ If you put $$2,000$ at the end of each year into a savings accpurit that pays iriterest at the rate of $5$ percent a year, how much would you heve after three years? Use the Appendix B$.$ Round the answer to the nearest cent, Round FV$-$factor to three decimal places. s