Working for Week 4 Quiz.docx - Sammi and Jason have \$4,000 to deposit in a money market fund earning 5 If they add \$2,000 to that account annually how

# Working for Week 4 Quiz.docx - Sammi and Jason have \$4,000...

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Sammi and Jason have \$4,000 to deposit in a money market fund earning 5%. If they add \$2,000 to that account annually, how much will they have accumulated in 15 years? (Show all work. Round your answer to the nearest dollar.) \$4,000 x (1 + 0.05)^15 + \$2000 x ((1+0.05^15 – 1) /0.05) =\$4,000 x (1.05)^15 + \$2000 x ((1.05^15-1)/0.05) =\$4,000 x 2.079 + \$2000 x (2.079-1)/0.05

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Unformatted text preview: =\$8316 + \$2000 x (1.079/0.05) =\$8316 + \$2000 x 21.58 =\$8316 + \$43160 =\$51,476 Gordon and Susan have a regular savings plan and have accumulated \$8,000. How much will this be worth in 10 years if they can earn 2% on the money? They are not planning to add to this savings account. \$8,000 x (1 + 0.02)^10 =\$8,000 x (1.02)^10 =\$8,000 x 1.219 =\$9752...
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