If you deposit $5,400 at the end of each of the next 25 years into an account paying 10.3 percent interest, how much money will you have in the account in 25 years

Question

Mathematics

Donavan Lynn

31 October, 03:49

If you deposit $5,400 at the end of each of the next 25 years into an account paying 10.3 percent interest, how much money will you have in the account in 25 years

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Answers (1)

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Dallas Webb · Answer 1

A=annual Amount = 5400

i=annual interest = 0.103 [ compounded annually]

n=number of periods [year] = 25

Future value

F=5400 ((1.103^25-1) / (0.103)

=555629.89

Answer: Future amount in account is $555629.89