Question

Derek will deposit $9,231.00 per year for 30.00 years into an account that earns 11.00%, The first deposit is made next year. How much will be in the account 37.00 years from today?

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Answer format: Currency: Round to: 2 decimal places

Answer 1

We use the formula:  
A=P(1+r/100)^n
where   
A=future value
P=present value  
r=rate of interest
n=time period.

A=9,231*(1.11)^36+9,231*(1.11)^35+9,231*(1.11)^34+9,231*(1.11)^33+9,231*(1.11)^32+9,231*(1.11)^31+9,231*(1.11)^30+9,231*(1.11)^29+9,231*(1.11)^28+9,231*(1.11)^27+9,231*(1.11)^26+9,231*(1.11)^25+9,231*(1.11)^24+9,231*(1.11)^23+9,231*(1.11)^22+9,231*(1.11)^21+9,231*(1.11)^20+9,231*(1.11)^19+9,231*(1.11)^18+9,231*(1.11)^17+9,231*(1.11)^16+9,231*(1.11)^15+9,231*(1.11)^14+9,231*(1.11)^13+9,231*(1.11)^12+9,231*(1.11)^11+9,231*(1.11)^10+9,231*(1.11)^9+9,231*(1.11)^8+9,231*(1.11)^7

=$3814241.97(Approx)