he output of the following function is the future value of an account if:PV dollars are depositedLeft for Y yearsAt an annual rate of rWith n compounds per year 𝐹𝑉=𝑃𝑉(1+𝑟𝑛)(𝑛𝑌) Philza plans to put $3,830 dollars in an account that earns 10.8% interest compounded monthly. Use the formula or the FV function in Excel to find Philza's account balance in 8 years. (Do not round until the final answer, then round your answer to the nearest dollar, and don't include the dollar sign.)
Question
he output of the following function is the future value of an account if:PV dollars are depositedLeft for Y yearsAt an annual rate of rWith n compounds per year 𝐹𝑉=𝑃𝑉(1+𝑟𝑛)(𝑛𝑌) Philza plans to put $3,830 dollars in an account that earns 10.8% interest compounded monthly. Use the formula or the FV function in Excel to find Philza's account balance in 8 years. (Do not round until the final answer, then round your answer to the nearest dollar, and don't include the dollar sign.)
Solution
To find the future value of Philza's account, we can use the given formula:
FV = PV(1 + r/n)^(nY)
Where:
- PV = Present Value = $3,830
- r = annual interest rate = 10.8% = 0.108 (in decimal form)
- n = number of times interest is compounded per year = 12 (monthly)
- Y = number of years = 8
Substituting these values into the formula, we get:
FV = 3830(1 + 0.108/12)^(12*8)
Now, calculate the expression inside the brackets:
= 3830(1 + 0.009)^(96)
= 3830(1.009)^(96)
Now, calculate the power:
= 3830 * 2.198237
Finally, multiply the present value by this number to get the future value:
= 8416.98
Rounding to the nearest dollar, Philza's account balance in 8 years will be approximately $8417.
Similar Questions
The output of the following function is the future value of an account if:PV dollars are depositedLeft for Y yearsAt an annual rate of rWith n compounds per year 𝐹𝑉=𝑃𝑉(1+𝑟𝑛)(𝑛𝑌) Marissa plans to put $4300 dollars in an account that earns 4% interest compounded monthly. Use the formula or the FV function in Excel to find Marissa's account balance in 13 years. (Do not round until the final answer, then round your answer to the nearest dollar, and don't include the dollar sign.)
The output of the following function is the future value of an account if PV dollars are deposited, left for Y years at an annual rate of r, with n compounds per year. 𝐹𝑉=𝑃𝑉(1+𝑟𝑛)(𝑛𝑌) Alonzo plans to put $5,615 dollars in an account that earns 6% interest compounded monthly. Use the formula to find Alonzo's account balance in 10 years. (Do not round until the final answer, then round your answer to the nearest dollar, and don't include the dollar sign.)
Alice opened a savings account and deposited $800.00 as principal. The account earns 10% interest, compounded quarterly. What is the balance after 10 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
Jasmine puts $500.00 into an account to use for school expenses. The account earns 7% interest, compounded annually. How much will be in the account after 10 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
Trent opened a savings account and deposited $400.00 as principal. The account earns 10% interest, compounded monthly. What is the balance after 3 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.