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A recent college graduate has been saving money for the past 5 years to buy his...

A recent college graduate has been saving money for the past 5 years to buy his dream car. He has deposited $4,200 at the end of each year and is making the last deposit today, that is, he will have made a total of 5 deposits. How much money will he have saved for his dream car assuming he earned an annual return. of 8.10% on his investments?

$30,889

$28,676

$19,809

$24,689

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Answer #1

Answer. $24,689
We will find the future value of this annuity at the rate of 8.1%.

Accumulated Amount = 4200 + 55 @ 8.1% = 4200x Cl.08-) 4200 x 5.87831 =$24688.9 or $24,689 aphron

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