You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 2 3 4 5 PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Present Value (PV) PV FV Factor Future Value (FV) PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).
You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 2 3 4 5 PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Present Value (PV) PV FV Factor Future Value (FV) PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You deposited $250 in the bank for 5 years at 12%.
- If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year.
| Year |
Year Beginning Balance |
Interest | Year End Balance |
| 1 | $250.00 | ||
| 2 | |||
| 3 | |||
| 4 | |||
| 5 |
PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).
| Present Value (PV) | PV FV Factor | Future Value (FV) |
PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).
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