Question

Your grandmother has been putting $5,000 into a savings account on every birthday since your first​ (that is, when you turned​ 1). The account pays an interest rate of 8%. How much money will be in the account on your 18th birthday immediately after your grandmother makes the deposit on that​ birthday?

Answer 1

Final Value= $187,251.22

Step-by-step explanation:

Giving the following information:

Your grandmother has been putting $5,000 into a savings account on every birthday since your first​ (that is, when you turned​ 1). The account pays an interest rate of 8%.

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

A= annual deposit

FV= {5,000[(1.08^18)-1]}/0.08= $187,251.22