Question

derek will deposit $2449 per year for 21 years into an account that earns 8% , the first deposit is made next year. He has $12,960 in his account today .How much will be in the account 43 years from today ?

Answer 1

Future Value Annuity after 21 years  =

r = 0.08

n = 21

=

= 123485.734608

Now, after 43 years,  this 123485.734608 will be = 123485.734608 * (1+r)^n

r = 0.08

n = 22 years

= 123485.734608 * (1+0.08)^22

=  671335.186559

Also he Present Value of 12960 will be after 43 years = 12960 * * (1+r)^n

=12960 * * (1+0.08)^43

= 345671.659869

So, total Value will be = 671335.186559 + 345671.659869 = 1,026,006.85