Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley

Exercise 8

If you put $6,000 in a savings account that pays interest at the rate of 4 percent, compounded annually, how much will you have in 5 years ( Hint: Use the future value formula.) How much interest will you earn during the 5 years If you put $6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after 5 years