Question

Evan opens a savings account with $5,000. He deposits $75 every month into the account that compounds annually and has a 0.85% interest rate. What will his account total be in 5 years?

$8,267.58

$5,597.57

$9,793.30

$12,851.12

Answer 1

Do u have a ti 84 calculator

Answer 2

Guess not ...

Answer 3

Do u know what compound annually means

Answer 4

?

Answer 5

naw i got an HP 10b II (Financial Calculator ) and yes i know what it means....its just no adding up!

Answer 6

So he makes 12 payments of 75 , compounded 1 time a year for 5 years . His present value is 5000.

Answer 7

N=60, 5*12

Answer 8

Your looking for the future value

Answer 9

yea the future value

Answer 10

U put n=60

Answer 11

?

Answer 12

U put n=60

Answer 13

Your looking for the future value

Answer 14

U get it

Answer 15

yea

Answer 16

Where were you messing up

Answer 17

idk but ended up with $9,793.50

Answer 18

Probably the number of periods , remember always multiply the amount of years · 12

Answer 19

yeah i got it, but now i'm stuck on another one

Patrick bought a 15-year treasury bond for a face amount of $500. The 3.5% interest will be compounded quarterly. What will the future value of Patrick’s investment be when he goes to cash it in on the maturity date 15 years from now?

$649.35

$837.67

$843.30

$3,939.05

Answer 20

Future value

Answer 21

N=180, compound periods per year =4

Answer 22

i got that part

Answer 23

Where are u stuck

Answer 24

U payed 500 right so payment =1

Answer 25

nvm

N= 60 = number of periods.... 15 years & interest is compounded quarterly (15*4)
I/Y= interest rate per period.... 3.5%/4 = 0.875%
PV = face value = what you pay for the bond now => $500
PMT = payment per period => 0, you are not receiving any payments
FV = ? => compute => $843.30149
$843.30

Answer 26

Is that what u got ?

Answer 27

Yea sorry that is correct I usually use the ti84 financial app , that is correct tho

Answer 28

iight thanks