Question

at the beginning of each year for 14 years, sherry kardell invested $400 that earns 10% annually. what is the future value of sherry's account in 14 years?

Answer 1

It will be 2400 because 4 times 1 equal to 4 them multiply it by 14 and I got 2400

Answer 2

The future value is $12308.99

Explanation:

Since Sherry Kardell is paying at the beginning of each year, therefore the annuity is due.

So,

`A = (1+r)* P* \left [ ((1+r)^(n)-1)/(r) \right ]`

`A = (1+0.1)*400* \left [ ((1+0.1)^(14)-1)/(0.1) \right ]`

`A = (1.1)*400* \left [ ((1.1)^(14)-1)/(0.1) \right ]`

`A = 440* \left [ (3.797-1)/(0.1) \right ]`

`A = 440* \left [ (2.797)/(0.1) \right ]`

`A =12308.99`

The future value is $12308.99