Question

#12 Derek will deposit $4,821.00 per year for 24.00 years into an account that earns 6.00%, The first deposit is made next year. How much will be in the account 35.00 years from today?

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=4,821*(1.06)^34+4,821*(1.06)^33+4,821*(1.06)^32+4,821*(1.06)^31+4,821*(1.06)^30+4,821*(1.06)^29+4,821*(1.06)^28+4,821*(1.06)^27+4,821*(1.06)^26+4,821*(1.06)^25+4,821*(1.06)^24+4,821*(1.06)^23+4,821*(1.06)^22+4,821*(1.06)^21+4,821*(1.06)^20+4,821*(1.06)^19+4,821*(1.06)^18+4,821*(1.06)^17+4,821*(1.06)^16+4,821*(1.06)^15+4,821*(1.06)^14+4,821*(1.06)^13+4,821*(1.06)^12+4,821*(1.06)^11

=$465048.78(Approx)