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21 February, 05:13

g You plan to deposit $1,700 per year for 5 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 5 years? Round your answer to the nearest cent. Do not round intermediate calculations. $ Assume that your deposits will begin today. What amount will be in your account after 5 years? Round your answer to the nearest cent. Do not round intermediate calculations.

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  1. 21 February, 08:35
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    Instructions are listed below

    Explanation:

    Giving the following information:

    You plan to deposit $1,700 per year for 5 years into a money market account with an annual return of 2%

    We need to use the final value formula with an annual payment:

    FV = {A*[ (1+i) ^n-1]}/i

    1) with deposits at the end of the year:

    FV = {1700*[ (1.02^5) - 1]}/0.02 = $8846.87

    2) with deposits at the beginning of the year:

    Because it is at the beginning, there is one more year of interest:

    FV = 8846.87 + [1700 * (1.02^5) - 1700] = $9023.81
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