Question

5) You deposit $3,000 into an account at the end of each year starting at the end of year 1. This account earns 10% interest compounded annually. How much money will you have at the end of 8 years? Note: you will make the final deposit into the account at the end of the 8th year.

Answer 1

$ 34.308

Step-by-step explanation:

Interest Annualitty Accumulate

Year 1 3.000

Year 2 3.000 300 3.000 6.300

Year 3 6.300 630 3.000 9.930

Year 4 9.930 993 3.000 13.923

Year 5 13.923 1.392 3.000 18.315

Year 6 18.315 1.832 3.000 23.147

Year 7 23.147 2.315 3.000 28.462

Year 8 28.462 2.846 3.000 34.308