Question

Derek will deposit $2,211.00 per year for 22.00 years into an account that earns 8.00%. The first deposit is made today. How much will be in the account 22.0 years from today? Note that he makes 22.0 total deposits.

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

Answer 1

You need to use a Financial calculator to solve this problem. You can download it.
2ND + PMT, 2ND + ENTER (The calculator will be in the BGN mode, as the payment is made at the bef=gining of the year)

N = 22 (The Payment will be made for 22 years)

PMT = 2,211 ( The payment will be 2,211 per year)

I/Y = 8 (The Interest rate earned will be 8% per year)

CPT + FV = 132,424.07

So after 22 years, the account will be $132,424.07

If you find the solution helpful, then please give a rating.