Question

If $200 is deposited in a savings account at the beginning of each year for 15 years and the account earns interest at 6% compounded annually, the value of the account at the end of 15 years will be most nearly?

Answer 1

The formula = yearly deposit*((((1+interest rate)^no of years)-1)/interest rate)

=200*((((1+0.06)^12)-1)/0.06)

=$3373.98

So, at the end of 15 years there would be $3374 in the account