The amounts accumulated in the investment account of Birr 1,500 at 7% interest compounded annually at the end of:
(1) 3 years is Birr 1,837.56.
(2) 6 years is Birr 2,251.10.
(3) 9 years is Birr 2,757.69.
What is the future value?
The future value refers to the value of an investment in the future after compounding the interest rate.
The future value can be computed using an online finance calculator as follows:
N (# of periods) = 3 years
I/Y (Interest per year) = 7
PV (Present Value) = Birr 1,500
PMT (Periodic Payment) = Birr 0
Results:
FV = Birr 1,837.56
Total Interest = Birr 337.56
N (# of periods) = 6 years
I/Y (Interest per year) = 7
PV (Present Value) = Birr 1,500
PMT (Periodic Payment) = Birr 0
Results:
FV = Birr 2,251.10
Total Interest = Birr 751.10
N (# of periods) = 9 years
I/Y (Interest per year) = 7
PV (Present Value) = Birr 1,500
PMT (Periodic Payment) = Birr 0
Results:
FV = Birr 2,757.69
Total Interest = Birr 1,257.69
Thus, the amounts accumulated in the investment account of Birr 1,500 at 7% interest compounded annually at the end of year 3 is Birr 1,837.56, year 6 is Birr 2,251.10, and year 9 is Birr 2,757.69.
Learn more about determining future values at https://brainly.com/question/24703884
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