Testbank Multiple Choice Question 67

Given below are the future value factors for 1 at 6% for one to five periods. Interest is compounded annually at 6%.

	Periods	Future Value of 1 at 6%
	1	1.060
	2	1.124
	3	1.191
	4	1.262
	5	1.338

What amount will be in a bank account three years from now if $12400 is invested each year for four years with the first investment to be made today?

$12400 1.060 4

($12400 1.191) + ($12400 1.124) + ($12400 1.060) + $12400

($12400 1.060) + ($12400 1.124) + ($12400 1.191) + ($12400 1.262)

$12400 1.262 4