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Hazel plans to contribute $1000/yr to an investment that pays 8%/yr compounded annually. If she contributes $1000 at the beginning of each year, how much money will she have in total after 10 yr? (Assume that she has not made the 11th contribution yet.)

 Feb 28, 2021
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As the payments are made at the BEGINNING of the period....this is an ANNUITY DUE calculation...

 

Here is one form of this calc:

 

FV = PMT * [  (1+i)n  - 1 ] / i       * (1+i)       PMT = 1000    i = .08     n =10       plug and play!     cheeky

 Feb 28, 2021

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