Question

You want to quit your job and return to school for an MBA degree 3 years from now, and

you plan to save $4,500 per year, beginning immediately. You will make 3 deposits in an
account that pays 5.2% interest. Under these assumptions, how much will you have 3 years from
today?
a. $14,953.30
b. $18,392.56
c. $12,560.78
d. $11,663.58
e. $16,747.70

Answer 1

Answer: b I believe.

Explanation:

4,500 times 5.2% = 4,754 add that to the amount of money you have already. giving you b.

Answer 2

Explanation:

`FV = (PMT * ((1+i)^(n) -1)/(i) )* (1 + i)`

FV = Future Value of the annuity

PMT = Amount of each annuity payment

i = Interest rate per period

n = Number of periods for which annuity will last

FV = ?

PMT = $4,500

i = 5.2% = 5.2/100 = 0.052

n = 3

`FV = (4500 * ((1+0.052)^(3) -1)/(0.052) )* (1 + 0.052)`

`FV = 14,953.30`

You will have $14,953.30 in 3 years.