On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his end-of-month paychecks. The money would earn 7% interest compounded monthly.(a) Find the future value of the account on December 1 using an Amortization Formula. (Round your answer to the nearest cent.)$ 10280X(b) Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually. (Round your answer to the nearest cent.)5.75X(c) Find Bert's total contribution to the account.$ 2356.176x(d) Find the total interest. (Round your answer to the nearest cent.)$ 7923.824X

(a)Deduction amount at month-end paycheck, A = $60 Interest rate = 7% compounded monthlyInterest…

On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his end-of-month paychecks. The money would earn 7% interest compounded monthly (a) Find the future value of the account on December 1 using an Amortization Formula. (Round your answer to the nearest cent.) $ 10260 X (b) Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually. (Round your answer to the nearest cent.) 5.75 (c) Find Bert's total contribution to the account. $2356.176 (d) Find the total interest. (Round your answer to the nearest cent) $ 7925824

On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his end-of-month paychecks. The money would earn 7% interest compounded monthly (a) Find the future value of the account on December 1 using an Amortization Formula. (Round your answer to the nearest cent.) $ 10260 X (b) Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually. (Round your answer to the nearest cent.) 5.75 (c) Find Bert's total contribution to the account. $2356.176 (d) Find the total interest. (Round your answer to the nearest cent) $ 7925824

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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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his end-of-month paychecks. The money would earn 7% interest compounded monthly.
(a) Find the future value of the account on December 1 using an Amortization Formula. (Round your answer to the nearest cent.)
$ 10280
X
(b) Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually. (Round your answer to the nearest cent.)
5.75
X
(c) Find Bert's total contribution to the account.
$ 2356.176
x
(d) Find the total interest. (Round your answer to the nearest cent.)
$ 7923.824
X

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