Question

Derek will deposit $9,577.00 per year for 14.00 years into an account that earns 6.00%, The first deposit is made next year. He has $15,886.00 in his account today. How much will be in the account 44.00 years from today?

Derek will deposit $4,617.00 per year for 27.00 years into an account that earns 13.00%, The first deposit is made next year. How much will be in the account 39.00 years from today?

Answer 1

Using financial calculator:

The deposits are to be made for 14 years.

N	14
I/Y	6.0000%
PV	15,886.00
PMT	$          9,577.00
CPT FV	$      237,178.01

Now there will be no deposit but the balance shall earn interest for next 30 years:

N	30
I/Y	6.0000%
PV	237,178.01
PMT	$                       -
CPT FV	$ 1,362,229.79

Hence Derek shall have $1,362,229.79 in his account in 44 years

N	27
I/Y	13.0000%
PV	-
PMT	$          4,617.00
CPT FV	$      927,281.10

Another 12 years:

N	12
I/Y	13.0000%
PV	927,281.10
PMT	$                       -
CPT FV	$ 4,019,321.35