Answer:
FV=$885,185.11
Step-by-step explanation:
Giving the following information:
Annual deposit (A)= $2,000
Interest rate (i)= 10%
Number of periods (n)= 40 years
To calculate the future value (FV) of the investment, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.1^40) - 1]} / 0.1
FV=$885,185.11