You deposit $5000 each year into an account earning 7% interest compounded annually. How much will...

Question

Question

You deposit $5000 each year into an account earning 7% interest compounded annually. How much will you have in the account in

Answer 1

Answer #1

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

=$5000[(1.07)^25-1]/0.07

=$5000*63.24903772

which is equal to

=$316,245.19(Approx).

Answer 2

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