Question

Assume you deposit $5,600 at the end of each year into an account paying 11 percent interest. How much money will you have in the account in 17 years

Answer 1

FV= $249,204.72

Step-by-step explanation:

Giving the following information:

Annual deposit= $5,600

Interest rate= 11%

Number of periods= 17 years

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,600*[(1.11^17) - 1]} / 0.11

FV= $249,204.72