Chapter 4 Financial Planning Exercise 7 Calculating interest earned and future value of savings account

If you put $3,000 in a savings account that pays interest at the rate of 3 percent, compounded annually,

1. how much will you have in six 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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2. how much interest will you earn during the six years? Round the answer to the nearest cent.

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4. If you put $3,000 at the end of each year into a savings account that pays interest at the rate of 3 percent a year, how much would you have after six years? Use the Appendix B. Round the answer to the nearest cent. Round FV-factor to three decimal places.

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