Calculating interest earned and future value of savings account
If you put $1,000 in a savings account that pays interest at the rate of 4 percent, compounded annually,
a. how much will you have in four years? Round the answer to the nearest cent. Round FV-factor to three decimal places or use the Appendix A
(Hint: Use the future value formula.)
$
1169.86
b. how much interest will you earn during the four years? Round the answer to the nearest cent.
$
169.86
c. If you put $1,000 at the end of each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after four
years? Use the Appendix B. Round the answer to the nearest cent. Round FV-factor to three decimal places.
$
4246.46