Question

When equal payments are made at fixed intervals for a specified number of periods, you can treat them as . You are planning to put $7,000 in the bank at the end of each year for the next eight years in hopes that you will have enough money for a trip around the world. If you are investing at an annual interest rate of 9%, how much money will you have at the end of eight years—rounded to the nearest whole dollar?

Answer 1

$77,199.32

Step-by-step explanation:

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1

R = interest rate

n = number of years

(1.09)^8 - 1 = 0.992563

$7,000 x (0.992563 / 0.09) = $77,199.32