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    Future value at end of 5 years; future value of an annuity

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    1. An investor deposits $50,000 today in an interest bearing account. The account pay 7% interest annually, and the investor expects to withdraw the principal plus interest at the end of 5 years. How much would the investor accumulate by the end of 5 years if interest is compounded monthly?

    2. You plan to deposit $500 at the beginning of each month in an account for a period of 10 years. Interest is to be compounded monthly at an annual rate of 5%. What is the future value of this series of deposits at the end of 10 years?

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    https://brainmass.com/business/annuity/future-value-years-future-value-annuity-247260

    Solution Preview

    An investor deposits $50,000 today in an interest bearing account. The account pay 7% interest annually, and the investor expects to withdraw the principal plus interest at the end of 5 years.
    How much would the investor accumulate by ...

    Solution Summary

    The future value at end of five years and the future value of annuity is determined. How much an investor would accumulate by the end of 5 years if interest is compound monthly is found.

    $2.19