Question

Reiss has invested $5,000 at the end of every year for the past 22 years and earns 8 percent annually. If he continues doing this, how much will his investment account be worth 12 years from now

Answer 1

Total amount will be = $856584.02

Step-by-step explanation:

Annual invested amount by Reiss = $5000

Interest rate earned on the invested amount = 8 percent annually or 0.08.

Total number of years the amount invested, 22 + 12 = 34 years

Now we have to find the total amount if the total investment years are 34 years. Below is the calculation.

`\text{Total amount} =Annuity [ ((1+r)^(n) - 1)/(r)] \\= 5000 [ ((1 + 0.08 )^(34) - 1)/(0.08)] \\= 856584.02 \ dollars`