Question

A company deposits $1000 in a bank at the beginning of each year for 15 years....

A company deposits $1000 in a bank at the beginning of each year for 15 years. The account earns 6% interest, compounded every 6 months. What is in the account at the end of 15 years?

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Answer #1

Solution:-

Annual Deposit = $1,000
Interest Rate = 6%
Number of deposits = 15

Future Value = $1000 * (1+0.06)^30 + $1000 * (1+0.06)^28 + $1000 * (1+0.06)^26 + $1000 * (1+0.06)^24 + $1000 * (1+0.06)^22 + $1000 * (1+0.06)^20 + $1000 * (1+0.06)^18 + $1000 * (1+0.06)^16 + $1000 * (1+0.06)^14 + $1000 * (1+0.06)^12 + $1000 * (1+0.06)^10 + $1000 * (1+0.06)^8 + $1000 * (1+0.06)^6 + $1000 * (1+0.06)^4 + $1000 * (1+0.06)^2

= 5743.49 + 5111.69 + 4549.38 + 4048.93 + 3603.54 + 3207.14 + 2854.34 + 2540.35 + 2260.90 + 2012.20 + 1790.85 + 1593.84 + 1418.52 + 1262.48 + 1123.6

= 43,121.25

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