Dick and Jane Smith invested $10,000 in a savings account paying 5% annual interest when their son, Jason, was born. The

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Dick And Jane Smith Invested 10 000 In A Savings Account Paying 5 Annual Interest When Their Son Jason Was Born The 1 (43.19 KiB) Viewed 51 times

Dick and Jane Smith invested $10,000 in a savings account paying 5% annual interest when their son, Jason, was born. They also deposited $500 on each of his birthdays until he was 20 (including his 20th birthday). Dick and Jane have obtained the following values related to the time value of money to help them with their planning process for their compounded interest decisions. Present value of 1 for 20 periods at 5% 0.37689 Future value of 1 for 20 periods at 5% 2.65330 Present value of an annuity of 1 for 20 periods at 5% 12.46221 Future value of an annuity of 1 for 20 periods at 5% 33.06595 To the closest dollar, how much was in the savings account on his 20th birthday (after the last deposit)? A. $53,066. B. $43,066. C. $30,000. D. $26,533.