Question: Financial Planning Exercise 7 Calculating Interest eamed and future value of savings account If you put $2,000 in a savings account that pays Interest at
Financial Planning Exercise 7 Calculating Interest eamed 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 five years? Round the answer to the nearest cent. Round FV-factor to three decimal places or use the Appendix A. (Hintthe b. how much interest will you earn during the five years? Round the answer to the nearest cent. c. If you put $2,000 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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