Question

The future value of $550 saved each year for 10 years at 8 percent. (Round your factor to 3 decimal places and final answer to 2 decimal places.) Answer is complete but not entirely correct. d. The amount a person would have to deposit today to be able to take out $600 a year for 8 years from an account earning 8 percent.

Answer 1

The future value of $550 saved each year for 10 years at 8 percent is $1,176.10.

Step-by-step explanation:

To find the future value of $550 saved each year for 10 years at 8 percent, we can use the formula for compound interest.

The formula is: FV = P*(1+r)^n, where FV is the future value, P is the principal (initial amount), r is the interest rate, and n is the number of years.

Using this formula, the future value can be calculated as:

FV = $550*(1+0.08)^10 = $1,176.10

Therefore, the future value of $550 saved each year for 10 years at 8 percent is $1,176.10.