Computing terminal value at the end of year


1. You plan to deposit $400 each year for 16 years in the account which pays 9% compounded annually. Terminal value at the end of the 16 year period is closest to:

a. $13,201
b. $19,329
c. $9,634
d. 17,667

2. Assume you want to set aside $2000 at the end of each of next 10 years in account paying 12% compounded annually. You accumulate at the end of 10 years amount closest to:

a. $20,324
b. $28,324
c. $22,456
d. $35,098

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Accounting Basics: Computing terminal value at the end of year
Reference No:- TGS020639

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