Future value-determine the savings amount

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Reference no: EM131312317

For each of these situations, determine the savings amount. Use the time value of money tables in Exhibit 1-A, Exhibit 1-B, Exhibit 1-C.

a. What would be the future value of a savings account started with $700, earning 10 percent (compounded annually) after 8 years? (Round time value factor to 3 decimal places and final answer to the nearest whole dollar.)

Future value $

b. Brenda Young desires to have $9,000 eight years from now for her daughter’s college fund. If she will earn 7 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation. (Round time value factor to 3 decimal places and final answer to the nearest whole dollar.)

Present value $

c. What future value amount would you have if you deposited $2,400 a year for 25 years at 5 percent (compounded annually)? (Round time value factor to 3 decimal places and final answer to the nearest whole dollar.)

Future value $

Reference no: EM131312317

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