Derek will deposit $8,356.00 per year for 29.00 years into an account that earns 9.00%, The first deposit is made next year. How much will be in the account 38.00 years from today?

The final value is $2,252,850.70

Explanation:

Giving the following information:

Derek will deposit $8,356.00 per year for 29.00 years into an account that earns 9.00%, The first deposit is made next year.

First, we need to calculate the final value of the first 29 years using the following formula:

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

A = annual deposit

FV = {8,356*[ (1.09^29) - 1]}/0.09 = 1,037,275.04

Now, we can calculate the final value of the following 9 years at an interest rate of 9%.

FV = PV * (1+i) ^n

FV = 1,037,275.04 * (1.09^9) = $2,252,850.70