you want to buy a new ski boat 2 years from now, and you plan to save $7,000 per year, beginning one year from today. you will deposit your savings in an account that pays 6.2% interest. how much will you have just after you make your second deposit, 2 years from now

$14429

Explanation:

For this question, we will use the annuity formula to solve. The future value of an annuity is given as:

= C × ([(1+i)^n - 1] / i)

where,

C = The Cash flow per period

= $7000

i = the interest rate

= 6.2%

n = number of years

= 2

Future value of annuity will now be:

= 7000 × ([(1+0.062)²- 1]/0.062)

= 7000 × ([1.062)² - 1]/0.062)

= 7000 × [(1.1278 - 1)/0.062)]

= 7000 × (0.1278/ 0.062)

= 7000 × 2.0613

= $14429

The answer is $14429

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.

enjoy the dunce cap fool