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What is the future value of an annual deposit of $800 earning 6 percent for 15 years

User Bharath R
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2 Answers

1 vote

Final answer:

The future value of an annual deposit of $800 earning 6 percent for 15 years is approximately $16,747.21.

Step-by-step explanation:

To calculate the future value of an annual deposit, you can use the formula:

Future Value = PMT x [(1 + r)ⁿ - 1] / r

Where PMT is the annual deposit amount, r is the interest rate per period, and n is the number of periods.

In this case, the annual deposit is $800, the interest rate is 6% (or 0.06), and the number of years is 15. Plugging these values into the formula:

Future Value = $800 x [(1 + 0.06)¹⁵ - 1] / 0.06

Using a calculator, the future value would be approximately $16,747.21.

User Maij
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4 votes
Future value of lump sum - $1,917.25
Compound interest interest earned- $1,117.25
User Mateen Ulhaq
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4.7k points