Question

How much can you accumulate in a savings plan if your annual year-end deposit is $500, and you earn 6% annual interest for 8 years?

S = p times 1 + r quantity to the n power minus 1 all over r
A. $7,265.40
B. $12,265.40
C. $4,948.73
D. $14,265.40

Answer 1

Hi there
The formula of the future value of annuity ordinary is
Fv=pmt [(1+r)^(t)-1)÷r]
Fv future value?
PMT 500
R 0.06
T 8 years

Fv=500×(((1+0.06)^(8)−1)÷(0.06))
Fv=4,948.73

Option c

Hope it helps