Question

For retirement, you decide to deposit $7348 at the end of each year and you will increase your deposit by $124 per year. How much will you have at the end of 20 years if the bank pays 2.5% compounded annually?

Answer 1

FV factor at r% for year N = (1 + r)^20-N

FV factor at 2.5% at year N = (1.025)^20-N

Accumulated amount after 20 years is the Future Worth, computed as follows.

Year	Deposit ($)	FV Factor @2.5%	Compounded Deposit ($)
	(A)	(B)	(A) x (B)
1	7348	1.5987	11747
2	7472	1.5597	11654
3	7596	1.5216	11558
4	7720	1.4845	11460
5	7844	1.4483	11360
6	7968	1.4130	11259
7	8092	1.3785	11155
8	8216	1.3449	11050
9	8340	1.3121	10943
10	8464	1.2801	10835
11	8588	1.2489	10725
12	8712	1.2184	10615
13	8836	1.1887	10503
14	8960	1.1597	10391
15	9084	1.1314	10278
16	9208	1.1038	10164
17	9332	1.0769	10050
18	9456	1.0506	9935
19	9580	1.0250	9820
20	9704	1.0000	9704
		Future Worth ($) =	215204