The Faithful Servants Church has started a building fund. Annual end-of-year deposits of $4,000 will begin at

Question:

The Faithful Servants Church has started a building fund. Annual end-of-year deposits of $4,000 will begin at the end of the current calendar year. The accumulating balance will earn 6% compound interest per year. The $4,000 deposits are expected to be made for eight years and then increased to $7,000 for four additional years.

Required

A. What balance will be in the fund immediately after the 12th deposit is made?

B. If no further deposits are made, and the balance is left to earn interest for 10 more years, what amount will be in the account?

C. What amount of interest revenue will be earned by the building fund up to the date of the 12th deposit?

Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...