Question

#10 Derek will deposit $6,008.00 per year for 22.00 years into an account that earns 11.00%, The first deposit is made next year. How much will be in the account 40.00 years from today?

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=6,008*(1.11)^39+6,008*(1.11)^38+6,008*(1.11)^37+6,008*(1.11)^36+6,008*(1.11)^35+6,008*(1.11)^34+6,008*(1.11)^33+6,008*(1.11)^32+6,008*(1.11)^31+6,008*(1.11)^30+6,008*(1.11)^29+6,008*(1.11)^28+6,008*(1.11)^27+6,008*(1.11)^26+6,008*(1.11)^25+6,008*(1.11)^24+6,008*(1.11)^23+6,008*(1.11)^22+6,008*(1.11)^21+6,008*(1.11)^20+6,008*(1.11)^19+6,008*(1.11)^18

=$3192832.23(Approx)