Question: Financial Planning Exercise 8 Calculating interest earned and future value of savings account If you put $8,000 in a savings account that pays interest at

Financial Planning Exercise 8

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 3 percent, compounded annually, how much will you have in 3 years? Round the answer to the nearest cent. Round FV-factor to three decimal places or use theAppendix A. (Hint:Use thefuture valueformula.)

How much interest will you earn during the 3 years? Round the answer to the nearest cent.

If you put $8,000 at the end ofeachyear into a savings account that pays interest at the rate of 3 percent a year, how much would you have after 3 years? Use theAppendix B. Round the answer to the nearest cent. Round FV-factor to three decimal places.

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