Sara Beth made annual deposits of $5,000 in an account that paid 4 percent compounded annually. How much money should be in the account immediately after her tenth deposit?

Question

asked Aug 4, 2021 60.7k views

1 Answer

Dan Jenson · Answer 1 · 2021-08-09T17:42:56+0000

Answer:

$60,030.54

Step-by-step explanation:

In this question, we use the FV formula that is presented in the spreadsheet.

The NPER shows the time period.

Given that,

Present value = $0

PMT = Monthly payments = $5,000

NPER = 10

Rate of interest = 4%

The formula is presented below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $60,030.54