Question

For the next 9 years, you decide to place $2,586 in equal year-end deposits into a savings account earning 10.82 percent per year. How much money will be in the account at the end of that time period?

Answer 1

Year End	Every year deposit	After 9 years after interest @10.82%
1	2586	5882.66	2586*(1.1082)^8	F O R M U L A U S E D
2	2586	5308.30	2586*(1.1082)^7
3	2586	4790.02	2586*(1.1082)^6
4	2586	4322.34	2586*(1.1082)^5
5	2586	3900.33	2586*(1.1082)^4
6	2586	3519.52	2586*(1.1082)^3
7	2586	3175.89	2586*(1.1082)^2
8	2586	2865.81	2586*(1.1082)^1
9	2586	2586.00	2586*(1.1082)^0
Money in the account at the end		36350.86

Explanation:-

Since $2586 is deposited at the end of the year one, so the interest will be received on the first deposit for 8 years at the rate of 10.82%, and then the next deposit of $ 2,586 at the end of the year two for 7 years @ 10.82% and so on till the end of year 8. However, for the 9th deposit of $2,586 no interest will be received, so it will be $2,586.

Hence the Money at the end of the 9 year period will be $ 36,350 (approx.)

Formula used in excel is provide beside the amount.