How much will you have in a savings account In ten years, If you deposit $1000 In the account at the end of each year and the account earns 6% Interest, compounded annually? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annultyot$1

Management Apr 25, 2021

How much will you have in a savings account In ten years, If you deposit $1000 In the account at the end of each year and the account earns 6% Interest, compounded annually? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annultyot$1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)
Multiple Choice
O $10,000
O $17,906
$10,600
O$13,181

Expert Solution

Computation of Future Value using FV Function in Excel:

=fv(rate,nper,pmt,-pv)

Here,

FV = Future Value = ?

Rate = 6%

NPER = 10 years

PMT = $1,000

PV = 0

Substituting the values in formula:

=fv(6%,10,-1000,0)

FV or Future Value = $13,180.79 or $13,181

So, Future Value is $13,181.

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