Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

You currently have $20,000.01 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?

Sagot :

facundobuzzetti

Answer:

FV= $44,269.11

Explanation:

First, we need to calculate the future value of the lump-sum deposit of $20,000:

FV= PV*(1 + i)^n

FV= 20,000.01*(1.05^11)

FV= $34,206.8

Now, the future value of the $800 annual deposit:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {800*[(1.05^10) - 1]} / 0.05

FV= $10,062.31

Finally, the total future value:

FV= $44,269.11

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.