Suppose you deposit $450 monthly into an account for seventeen years. The account has an APR of 4.2% compounded monthly. a. Find the ending balance (after 17 years). Answer: $ _____________ b. How much of the ending balance is money you deposited? (HINT: Find the total deposits.) Answer: $ _____________ c. How much of the ending balance is interest? (Use your rounded answer to part a.) Answer: $ _____________

Suppose you deposit $450 monthly into an account for seventeen years. The account has an APR of 4.2% compounded monthly. a. Find the ending balance (after 17 years). Answer: $ _______ b. How much of the ending balance is money you deposited? (HINT: Find the total deposits.) Answer: $ _ c. How much of the ending balance is interest? (Use your rounded answer to part a.) Answer: $ _______

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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Question

Savings Plan

Suppose you deposit $450 monthly into an account for seventeen years. The account has an APR of 4.2% compounded monthly.

a. Find the ending balance (after 17 years).

Answer: $ _____________

b. How much of the ending balance is money you deposited? (HINT: Find the total deposits.)

Answer: $ _____________

c. How much of the ending balance is interest? (Use your rounded answer to part a.)

Answer: $ _____________

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