Question

calculate the final amount of 20 year long term saving plan if a payment $2000 is made at the end of every year. Intersest is 8.5% compounded annually.

Answer 1

`\bf \qquad \qquad \textit{Future Value of an ordinary annuity} \\\\ FV=pymnt\left[ \cfrac{\left( 1+(r)/(n) \right)^(nt)-1}{(r)/(n)} \right] \\\\\\ \qquad \begin{cases} pymnt=\textit{periodic payments}\to &2,000\\ r=rate\to 8.5\%\to (8.5)/(100)\to &0.085\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, means once} \end{array}\to &1\\ t=years\to &20 \end{cases}`