2.7 Future Value of Investments - B

Financial Algebra Second Edition

Slide 1

2-7: Future Value of Investments

Learning Goals

The students will be able to:
• Calculate the future value of a periodic deposit
investment.
• Graph the future value function.
• Interpret the graph of the future value function.

Multiple Choice

Spongebob and Squidward want to retire when they are 65, but they are currently 20 years old. They deposit $3,000 each year in a savings account that earns 2.9% interest, compounded semiannually What will the balance be when they retire?

• $359,860.39

• $271,020.08

• $548,957.38

• $184,908.23

Multiple Choice

When Derrick turned age 15, his grandparents put $10,000 into an account that yielded 1.4% interest, compounded quarterly. When Derrick turns 18, his grandparents will give him the money to use toward his college education. How much does Derrick receive from his grandparents on his 18th birthday?

• $10,428.18

• $10,428.20

• $10,430.20

• $10,430.18

Financial Algebra Second Edition

Slide 4

Example 3:

Linda and Rob open an online savings account that has a 1% annual interest rate, compounded monthly. If they deposit $1,200 every month, how much will be in the account after 10 years?

Financial Algebra Second Edition

Slide 5

Multiple Choice

Hannah and Alex are 30 years old and want to retire at 65. They deposit $4,000 each year into an account that pays 3.4% interest, compounded annually. What is the account balance when Hannah and Alex retire?

• $481,876.97

• $360,729.25

• $261,493.23

• $405,671.89

Multiple Choice

Jessica and Michael open an online savings account that has 3.6% annual interest rate, compounded monthly. If they deposit $1,200 every month, how much will be in the account after 10 years?

• 179,879.20

• $180,950.70

• $173,022.87

• $172,035.65

Multiple Choice

Hilda and Maggie open an online savings account that has 3.9% annual interest rate, compounded monthly. If they deposit $1,600 every month, how much will be in the account after 15 years?

• 256,258.99

• 390,542.33

• 567,890.97

• 415,678.89

Multiple Choice

Delilah and Jacob are 30 years old and want to retire at 65. They deposit $9,000 each year into an account that pays 3.8% interest, compounded annually. What is the account balance when they retire?

• 698,768.93

• 636,865.84

• 789,417.17

• 715,908.09

Multiple Choice

Macy and Tom are 20 years old and want to retire at 70. They deposit $5,000 each year into an account that pays 3.7% interest, compounded monthly. What is the account balance when they retire?

• 8,662,287.12

• 6,526,136.15

• 5,125,369.19

• 7,259,255.44

Multiple Choice

Macy and Tom are 18 years old and want to retire at 65. They deposit $3,000 each year into an account that pays 3.8% interest, compounded monthly. What is the account balance when they retire?

• 6,225,009.98

• 4,688,272.62

• 7,589,659.03

• 3,226,259.44