With deposits of $5,000 at the end of each year,you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%.(PV of $1,FV of $1,PVA of $1,and FVA of $1)$\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$

Question

Quizplus · Accepted Answer

This is a simple annuity problem with annual deposits of $5,000 and an annual interest rate of 10%. Using the FVA of $1 table, we can find the factor for six years at 10%, which is 1.791. Multiplying the factor by the annual deposit of $5,000 gives us a total accumulated amount of $8,955 at the end of six years. Using the FV of $1 table, we can find the factor for six years at 10%, which is 1.791. Multiplying the factor by the initial deposit of $5,000 gives us a total accumulated amount of $8,955 at the end of six years. Adding these two amounts gives us a total accumulated amount of $38,578, confirming that the statement is true.

With Deposits of $5,000 at the End of Each Year,you (Use appropriate factor(s)from the tables provided.)\bold{\text{(Use appropriate factor(s)from the tables provided.)}}(Use appropriate factor(s)from the tables provided.)

With Deposits of $5,000 at the End of Each Year,you $\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$