Question

2. A deposit of $650 is planned for the end of each year into an account paying 6%/year compounded annually. The deposits were not made for the tenth and eleventh years. All other deposits were made as planned. What approximate amount will be in the account after the deposit at the end of year 25

Answer 1

Amount = $2482.84

Step-by-step explanation:

given data

deposit amount principal = $650

Interest Rate r = 6 % = 0.06

Compounded annually (n) = 1

Number of years (t) = 25-2 = 23 years

solution

we get here amount by using this formula that is

Amount = Principal ×
`(1 + (r)/(n))^(nt)` ........................1

put here value and we get

Amount = $650 ×
`(1 + (0.06)/(1))^(1* 23)`

solve it we get

Amount = $2482.84