You deposit $1,700 at the end of each year into an account paying 11.1 percent interest.
a. | How much money will you have in the account in 20 years? |
b. | How much will you have if you make deposits for 40 years? |
We need to find the future value
a) PMT = 1,700
r = 11.1% = 0.111
n = 20
We will have $110,405.4804885584 in our account after 20 years
b) PMT = 1,700
r = 11.1% = 0.111
n = 40
We will have $1,016,705.1277656747 in our account after 40 years
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