Multiple choice questions on annual compounding.
1.You plan to deposit $400 each year for 16 years in an account that pays 9% compounded annually. The 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.Suppose you wish to set aside $2000 at the end of each of the next 10 years in an account paying 12% compounded annually. You accumulate at the end of 10 years an amount closest to
a.$20,324
b.$28,324
c.$22,456
d.$35,098