Question

If Bob deposits $5000 at the end of each year for in an account paying 6% interest compounded annually, find the amount he will have on deposit.

Answer 1

future value = 5000 ×
`((1+0.06)^t -1)/(0.06)`

if time 14 year than

future value = $105075.33

Step-by-step explanation:

given data

principal = $5000

interest rate = 6% compounded annually = 0.06

to find out

deposit amount

solution

we here assume time period = t

so we apply here future value formula that is

future value = principal ×
`((1+r)^t -1)/(r)` ................1

put here value we get , future value

future value = 5000 ×
`((1+0.06)^t -1)/(0.06)`

so if time period is 14 year put value of t = 14

future value = 5000 ×
`((1.06)^14 -1)/(0.06)`

future value = $105075.33