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Steve has decided to save 21831 dollars at the end of every year from now on...

Steve has decided to save 21831 dollars at the end of every year from now on (no deposit today). If he keeps doing this over the next 23 years and deposits those dollars in a savings account that yields 3% per year, what will be the maximum dollar amount that Steve will be able to withdraw at the end of those 23 years? (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

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Answer #1

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=$21831[(1.03)^23-1]/0.03

=$21831*32.4528837

=708478.90(Approx).

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