Question

5) You deposit $3,000 into an account at the end of each year starting at the end of year 1. This account earns 10% interest compounded annually. How much money will you have at the end of 8 years? Note: you will make the final deposit into the account at the end of the 8th year.

Answer 1

Answer:

$ 34.308

Explanation:

 Interest                 Annualitty Accumulate  

Year 1                   3.000  

Year 2 3.000 300         3.000     6.300

Year 3 6.300 630         3.000     9.930

Year 4 9.930 993         3.000    13.923

Year 5 13.923 1.392 3.000    18.315

Year 6 18.315 1.832 3.000    23.147

Year 7 23.147 2.315 3.000   28.462

Year 8 28.462 2.846 3.000   34.308