You deposit $1,700 at the end of each year into an account paying 11.1 percent interest....

Question

Question

You deposit $1,700 at the end of each year into an account paying 11.1 percent interest.

a.	How much money will you have in the account in 16 years?

b.	How much will you have if you make deposits for 32 years?

Answer 1

Answer #1

FVA = C{[(1 + r)^t – 1] / r}

a. FVA for 16 years = $1,700[(1.111^16 – 1) / 0.111] = $67,203.10

b. FVA for 32 years = $1,700[(1.111^32 – 1) / 0.111] = $429,291.21

Answer 2

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