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Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest. Requirement 1: How much money will you have in the account in 17 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Annuity future value $ 42008.68 Requirement 2: How much will you have if you make deposits for 34 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

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Answer:

Results are below.

Explanation:

Giving the following information:

Annual deposit= $5,400

Interest rate= 10.5%

1) Number of periods= 17 years

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,400*[(1.105^17) - 1]} / 0.105

FV= $229,349.5

2) Number of periods= 34 years

FV= {5,400*[(1.105^34) - 1]} / 0.105

FV= $1,481,499.98

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