Assuming your client invests $1,300 at the end of each of the next five years, and the investments earn 43% compounded annually, the future value at the end of the five years can be calculated using the future value of an ordinary annuity formula:
FV = P * [(1 + r)^n - 1] / r
![FV = P * [ (1 + r) ^(n-1)] / r](https://img.qammunity.org/2024/formulas/business/high-school/ujw534jyj8dffygidhls2ho5mx5vpzacaw.png)
Where FV is the future value, P is the periodic investment ($1,300), r is the interest rate (0.43), and n is the number of periods (5).
FV = $1,300 * [(1 + 0.43)^5 - 1] / 0.43
FV = $1,300 * [3.38637 - 1] / 0.43
FV = $1,300 * 2.38637 / 0.43
FV = $7,262.61
Therefore, the future value at the end of the five years is approximately $7,262.61.