Melissa invests $37,000 today in a savings account that pays 4 percent interest compounded annually. She wants to know the total balance in her account seven years from today. Identify the correct keystrokes to be used in a financial calculator to determine the total balance.

a. N = 7, I/Y = 4, PV = - 37,000

b. N = 7, I/Y = 4%, PV = - 37,000

c. N = 7, I/Y = 4, PV = 37,000

d. N = 7, I/Y = 4%, PV = 37,000

Question

Sloan

Business

14 January, 20:34

Melissa invests $37,000 today in a savings account that pays 4 percent interest compounded annually. She wants to know the total balance in her account seven years from today. Identify the correct keystrokes to be used in a financial calculator to determine the total balance.

a. N = 7, I/Y = 4, PV = - 37,000

b. N = 7, I/Y = 4%, PV = - 37,000

c. N = 7, I/Y = 4, PV = 37,000

d. N = 7, I/Y = 4%, PV = 37,000

+3

Answers (1)

Know the Answer?

Lamont Wiggins · Answer 1

c. N = 7, I/Y = 4, PV = 37,000

Explanation:

In financial Calculator the following key wii be pressed to calculate the the balance of the account (Future value)

For the number of year enter N = 7

Interest per year enter I/Y = 4

For present value enter PV = 37,000

This will calculate Malissa's account balance after 7 years which is $48,689.

So the correct answer is c. N = 7, I/Y = 4, PV = 37,000.