Question

How much money will you have in a savings account that earns 16% annually in 10 years if you invest $5000 per year?

Answer 1

The final value is $106,607.35.

Step-by-step explanation:

Giving the following information:

n= 10 years

i= 16%

Annual deposit= $5,000

To calculate the final value we need to use the following version of the final value formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*{(1.16^10)-1]}/0.16= $106,607.35