Emma is saving for a new car. She deposits $2200 into an annuity account at the end of every year, for four years. The account pays 3% per annum interest, compounding annuall The table shows future values of an annuity of $1. Future values of an annuity of $1 Years Interest rate per annum 1% 1.5% 2% 2.5% 3% 3.5% 4% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0100 2.0150 2.0200 2.0250 2.0300 2.0350 2.0400 3.0301 3.0452 3.0604 3.0756 3.0909 3.1062 3.1216 4 4.0604 4.0909 4.1216 4.1525 4.1836 4.2149 4.2465 5 5.1010 5.1523 5.2040 5.2563 5.3091 5.3625 5.5256
Emma is saving for a new car. She deposits $2200 into an annuity account at the end of every year, for four years. The account pays 3% per annum interest, compounding annuall The table shows future values of an annuity of $1. Future values of an annuity of $1 Years Interest rate per annum 1% 1.5% 2% 2.5% 3% 3.5% 4% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0100 2.0150 2.0200 2.0250 2.0300 2.0350 2.0400 3.0301 3.0452 3.0604 3.0756 3.0909 3.1062 3.1216 4 4.0604 4.0909 4.1216 4.1525 4.1836 4.2149 4.2465 5 5.1010 5.1523 5.2040 5.2563 5.3091 5.3625 5.5256
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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Transcribed Image Text:Emma is saving for a new car. She deposits $2200 into an annuity account at the end of
every year, for four years. The account pays 3% per annum interest, compounding annually.
The table shows future values of an annuity of $1.
Future values of an annuity of $1
Years
Interest rate per annum
1%
1.5%
2%
2.5%
3%
3.5%
4%
1
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
2.0100
2.0150
2.0200
2.0250
2.0300
2.0350
2.0400
3
3.0301
3.0452
3.0604
3.0756
3.0909
3.1062
3.1216
4
4.0604
4.0909
4.1216
4.1525
4.1836
4.2149
4.2465
5.1010
5.1523
5.2040
5.2563
5.3091
5.3625
5.5256
How much interest does Emma earn on her investment over the four years?
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