Question

You plan to save $7,300 per year for the next 11 years. After the last deposit, you will keep the money in the account for 3 more years. The account will earn an interest rate of 7.6 percent. How much will there be in the account 14 years from today?

Answer 1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=7300*(1.076)^13+7300*(1.076)^12+7300*(1.076)^11+7300*(1.076)^10+7300*(1.076)^9+7300*(1.076)^8+7300*(1.076)^7+7300*(1.076)^6+7300*(1.076)^5+7300*(1.076)^4+7300*(1.076)^3

which is equal to

=$148184.28(Approx)