Question

Hemos decidido ahorrar ingresando en un banco 1000 € al principio de cada año. Calcula, aplicando la fórmula, la cantidad que tendremos ahorrado al cabo de 8 años, sabiendo que el banco nos da un 6% de interés.

Answer 1

There will be 9897.47€ in the account.

La cantidad será de 9897.47€.

Explanation:

Future value with annuity:

The future value formula, for an annuity, is:

`FV = (P((1+r)^(n) - 1))/(r)`

An annuity means that a number of payments happen during the period(an year, for example.

P is the value of the deposit, r is the interest rate, as a decimal, and n is the number of deposits.

In this question:

1000 € each year, so
`P = 1000`

Interest rate of 6%, so
`r = 0.06`

One application per year for 8 years, so
`n = 8`

Total amount:

`FV = (1000((1+0.06)^(8) - 1))/(0.06) = 9897.47`

There will be 9897.47€ in the account.

La cantidad será de 9897.47€.