**Investment Opportunity After Debt Payment**Once you have paid off a car loan or credit card, consider reinvesting that amount instead of removing it from your budget. You can secure your financial future by allocating this amount to a retirement account. For example, if you invest $360 at the end of each quarter for 8 years at an interest rate of 6%, how much would that grow to? For precise calculations, refer to the provided table.**Important Calculation Notes:**- Do not round your calculations at intermediate steps.- Final answers should be rounded to the nearest cent.**Input Field:**- [Amount after 8 years] **Future Value Interest Factor of an Ordinary Annuity (FVIFA)**This table provides the future value interest factor of an ordinary annuity of $1 per period at various interest rates (%) over different numbers of periods (n). The values in the table are used to calculate the future value of a series of equal payments made at the end of each period, compounded at a specified interest rate.**Columns and Rows:**- **Period (n):** Rows are labeled 1 through 40, representing the number of periods for the annuity. - **Interest Rates (%):** Columns are labeled with interest rates ranging from 0.5% to 10.0%, increasing in increments of 0.5%.**How to Use the Table:**1. **Identify the Number of Periods:** Locate the row corresponding to the number of periods for the annuity. 2. **Select the Interest Rate:** Locate the column corresponding to the interest rate. 3. **Find the Factor:** The intersection of the row and column provides the FVIFA for that specific period and interest rate.**Sample Calculation Example:**To calculate the future value of an ordinary annuity with payments of $1 per period at an interest rate of 5.0% and over 10 periods: - Locate period 10 in the first column.- Move across to the column labeled 5.0%.- The factor is 12.5781.Multiply the annuity payment by the factor to find the future value. If payments were $100 per period: - Future Value = $100 x 12.5781 = $1,257.81This table is an essential tool for financial planning and analysis, helping users understand the impact of interest rates and the time value of money on future savings and investments.

Solution:- When an equal amount is invested each period at end of period, it is called ordinary…

After paying off a car loan or credit card, don't remove this amount from your budget. Instead, invest in your future by applying some of it to your retirement account. How much would $360 invested at the end of each quarter be worth in 8 years at 6% interest? (Please use the following provided Table;) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Amount after 8 years

After paying off a car loan or credit card, don't remove this amount from your budget. Instead, invest in your future by applying some of it to your retirement account. How much would $360 invested at the end of each quarter be worth in 8 years at 6% interest? (Please use the following provided Table;) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Amount after 8 years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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