Question

Hei has $1500 in a retirement account earning 5% interest compounded annually.Each year after the first,she makes additional deposits of $1500.After five years, what was her account. balance if she did not make any withdrawals?

Answer 1

1500 (1.05) = 1575 --> after one year

1575 + 1500 = 3075
3075 (1.05) = 3228.75 --> after two years

3228.75 + 1500 = 4728.75
4728.75 (1.05) = 4965.1875 --> after three years

4965.1875 + 1500 = 6465.1875
6465.1875 (1.05) = 6788.44688 --> after four years

6788.44688 + 1500 = 8288.44688
8288.44688 (1.05) = 8702.86922 --> after five years = $8702.87