Question

You plan to deposit $4,700 at the end of each of the next 25 years into an account paying 10.3 percent interest. a. How much will you have in your account if you make deposits for 25 years

Answer 1

Final Value= $483,603.80

Step-by-step explanation:

Giving the following information:

You plan to deposit $4,700 at the end of each of the next 25 years into an account paying 10.3 percent interest

We need to calculate the final value using the following formula:

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

A= annual deposit= 4,700

n= 25

i= 0.103

FV= {4,700*[(1.103^25)-1]} / 0.103= $483,603.80