Question

Derek will deposit $4,641.00 per year for 28.00 years into an account that earns 14.00%. The first deposit is made next year. How much will be in the account 28.0 years from today?

Answer format: Currency: Round to: 2 decimal places.

Answer 1

Periodic yearly deposit commencing at the end of each period = $4641

Calculating the Future Value at the end of year 28:-

Where, C= Periodic Payments = $4641

r = Periodic Interest rate = 14%

n= no of periods = 28

Future Value = $1266,478.93

So, amount will be in the account 28.0 years from today is $1266,478.93

If you need any clarification, you can ask in comments.     

If you like my answer, then please up-vote as it will be motivating