Determine the future value that janet will have in 10 ?years

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Janet Boyle intends to deposit ?$220 per year in a credit union for the next 10 ?years, and the credit union pays an annual interest rate of 9?%.

a. Determine the future value that Janet will have in 10 ?years, given that? end-of-period deposits are made and no interest is? withdrawn, if

?(1) ?$220 is deposited annually and the credit union pays interest annually.

?(2) ?$110 is deposited semiannually and the credit union pays interest semiannually.

?(3) ?$55 is deposited quarterly and the credit union pays interest quarterly.

b. Use your finding in part a to discuss the effect of more frequent deposits and compounding of interest on the future value of an annuity.

Reference no: EM132623442

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