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12 January, 11:50

If Jim deposits $5,000 at the beginning of each year for 10 years in an account paying 5% interest compounded annually, find the amount he will have at the end of the 10 years.

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  1. 12 January, 12:42
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    1 year:

    Deposits: 5000

    Interest: 250

    Total: 5250

    10 years:

    Deposits: 5000 x 10

    = 50000

    Interest: 250 x 10

    = 2500

    Total: 52500
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