A person deposits $5000 into an investment account at the end of each year for 10 years. The account earns 4% interest annually. What is the future value of the annunity after the 10th deposit.
Using Geometric Sequence to solve!
A person deposits $5000 into an investment account at the end of each year for 10 years. The account earns 4% interest annually. What is the future value of the annunity after the 10th deposit.
Using Geometric Sequence to solve!
FV=P[(1 + r)^n - 1] / r=5000[(1.04)^10 -1] / .04=$60,030.54
