Ask Question
BusinessBusiness
27 October, 00:22

To save for a new car, Samuel Smith will invest $3,000 at the end of each year for the next 5 years. The interest rate is 8%. What is the future value?

+1
Answers (1)
  1. 27 October, 00:44
    0
    Answer: FV = A ((1 + r) n - 1) / r

    FV = $3,000 ((1 + 0.08) 5 - 1) / 0.08

    FV = $3,000 ((1.08) 5 - 1) / 0.08

    FV = $3,000 (1.4693280768 - 1) / 0.08

    FV = $3,000 (0.4693280768) / 0.08

    FV = $3,000 x 5.86660096

    FV = $17,599.80

    Explanation: The question relates to future value of an ordinary annuity. The variables are defined below:

    FV = Future value = ?

    A = Annuity per period = $3,000

    n = No of years = 5 years

    r = Interest rate = 8% = 0.08
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “To save for a new car, Samuel Smith will invest $3,000 at the end of each year for the next 5 years. The interest rate is 8%. What is the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?
Answers (1)
Shawn saw an ad in the newspaper that showed a new four-door sedan on sale for $14,999. when shawn arrived at the dealership, he was told the last sales model was just sold but that identical models were available for $16,999.
Answers (1)
Enterprise managers and workers in the soviet union often resisted innovations in production methods because
Answers (1)
On the morning of her presentation, Clara finished her final slide. Now, three hours before her presentation, she called a friend to ask what building and room number she will be presenting in. What is Clara's big mistake? A.
Answers (2)
Which company has been pioneering the use of driverless cars?
Answers (2)
New Questions in Business
Lewis Inc. had the following information taken from various accounts for 2015: Sales Discounts $41,000 Unearned Revenue $32,000 Total Sales $459,000 Purchase Discounts $15,000 Sales Allowances $35,000 Accounts Receivable $205,000 What was Lewis Inc.
Answers (1)
True or False: The basic economic theory of supply and demand suggests that when price drops, consumers will buy more and thus generate stronger demand.
Answers (1)
If you think carefully about what you're doing, always ask for advice when you need it, and keep asking questions, starting a business can be
Answers (2)
16. What size paper should you use for a legal document? A. 3" x 5" B. 8/2" x 11" C. 872" x 14" D. 74" x 1072"
Answers (2)
Assume an economy where there are two producers: a wheat producer and a bread producer. In a given year, the wheat producer grows 30 million bushels of wheat of which 25 million bushels are sold to the bread producer at $3 per bushel, and 5 million
Answers (1)
Home » Business » To save for a new car, Samuel Smith will invest $3,000 at the end of each year for the next 5 years. The interest rate is 8%. What is the future value?
Sign Up Forgot Password?