Suppose you invest $2500 each year in a savings account that earns 12% per year. How much will be in the account in 10 years?

Final Value = $43,871.84

Explanation:

Giving the following information:

Suppose you invest $2500 each year in a savings account that earns 12% per year.

Number of years = 10

To calculate the final value we need to use the following formula:

FV = {A*[ (1+i) ^n-1]}/i

A = annual deposit = 2,500

i = 0.12

n=10

FV = {2,500*[ (1.12^10) - 1]}/0.12 = $43,871.84