Question

Derek will deposit $6,593.00 per year for 26.00 years into an account that earns 14.00%, The first deposit is made next year. He has $12,195.00 in his account today. How much will be in the account 49.00 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=12,195*(1.14)^49+6,593*(1.14)^48+6,593*(1.14)^47+6,593*(1.14)^46+6,593*(1.14)^45+6,593*(1.14)^44+6,593*(1.14)^43+6,593*(1.14)^42+6,593*(1.14)^41+6,593*(1.14)^40+6,593*(1.14)^39+6,593*(1.14)^38+6,593*(1.14)^37+6,593*(1.14)^36+6,593*(1.14)^35+6,593*(1.14)^34+6,593*(1.14)^33+6,593*(1.14)^32+6,593*(1.14)^31+6,593*(1.14)^30+6,593*(1.14)^29+6,593*(1.14)^28+6,593*(1.14)^27+6,593*(1.14)^26+6,593*(1.14)^25+6,593*(1.14)^24+6,593*(1.14)^23

=$35458056.36(Approx)