What is the future worth of a series of deposits of $1,123 for 25 years into...

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Question

What is the future worth of a series of deposits of $1,123 for 25 years into a savings account that receives 8% annual interest?

Answer 1

Answer #1

Future value = Annuity * [(1 + r)ⁿ - 1] / r

Future value = 1,123 * [(1 + 0.08)²⁵ - 1] / 0.08

Future value = 1,123 * [6.848475 - 1] / 0.08

Future value = 1,123 * 73.10594

Future value = $82,097.97

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Answer 2

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