7:19 1Eva opened a savings account with aninitial deposit of $897. They then deposit$897 into that savings account at the end ofevery subsequent year. This savingsaccount pays an annual interest rate of2.8% and is compounded annually. Howmuch will Eva have in their account after 8years?B(t) = P.Bn-t1+1n¹ + 1)^¨* - ;(5)I U U A123QWERTYUIOPASDF GHJKL||||=spaceZXC CVBNM ×return!

We need to use future value of annuity formula to calculate saving balance after 8 years. B(t)…

Answered: Eva opened a savings account with an…

Eva opened a savings account with an initial deposit of $897. They then deposit $897 into that savings account at the end of

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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Question

7:19 1
Eva opened a savings account with an
initial deposit of $897. They then deposit
$897 into that savings account at the end of
every subsequent year. This savings
account pays an annual interest rate of
2.8% and is compounded annually. How
much will Eva have in their account after 8
years?
B(t) = P.
B
n-t
1+
1
n
¹ + 1)^¨* - ;
(5)
I U U A
123
QWER
TYUIOP
ASDF GHJKL
||||
=
space
ZXC CVBNM ×
return
!

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