The table shows a series of deposits at different dates into a savings account.If the account pays 10.5% interest (compounded annually),what is their future value at year 6?

A) $109,477.35
B) $99,074.53
C) $75,000.00
D) $107,569.55
E) $97,790.50

Question

The table shows a series of deposits at different dates into a savings account.If the account pays 10.5% interest (compounded annually),what is their future value at year 6?

A) $109,477.35 
B) $99,074.53 
C) $75,000.00 
D) $107,569.55 
E) $97,790.50

Quizplus · Accepted Answer

Take the future value of each cash flow and then add them together:
FV = PV × 11ea7fdb_fc2a_7e44_a768_350b6d2f9624_TB2902_00 FV = 35,000 × (1.105 11ea7fdb_fc2a_7e45_a768_01546111ddfb_TB2902_00 = $57,660.64
FV = 7,000 × (1.105 11ea7fdb_fc2a_7e46_a768_4de25317621d_TB2902_00 = $10,436.31
FV = 13,000 × (1.105 11ea7fdb_fc2a_7e47_a768_0d8a747e6464_TB2902_00 = $17,540.02
FV = 15,000 × (1.105 11ea7fdb_fc2a_7e48_a768_b53d0d0ebafe_TB2902_00 = $18,315.38
FV = 5,000 × (1.105 11ea7fdb_fc2a_7e49_a768_27c9b8d47d66_TB2902_00 = $5,525
57,660.64 + 10,436.31 + 17,540.02 + 18,315.38 + 5,525 = $109,477.35

The Table Shows a Series of Deposits at Different Dates