Chapter 4 Financial Planning Exercise 7 Calculating interest earned and future value of savings account If you put $8,000 in a savings account that pays interest at the rate of 5 percent, compounded annually,

how much will you have in five 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.)

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how much interest will you earn during the five years? Round the answer to the nearest cent.

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If you put $8,000 at the end of each year into a savings account that pays interest at the rate of 5 percent a year, how much would you have after five years? Use the Appendix B. Round the answer to the nearest cent. Round FV-factor to three decimal places.

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