Find the amounts of the following annuities. At the end of each year, Roy Munson will...
Find the amounts of the following annuities.
At the end of each year, Roy Munson will deposit $2100 into a 401k retirement account. Find the amount he will have accumulated in 10-years if the funds earn 8% per year.
Homework Answers
Annual Deposit = $2,100
Number of Deposits = 10
Annual Interest Rate = 8.00%
Future Value = $2,100*1.08^9 + $2,100*1.08^8 + … + $2,100*1.08 +
$2,100
Future Value = $2,100 * (1.08^10 - 1) / 0.08
Future Value = $2,100 * 14.486562
Future Value = $30,421.78
So, Roy will have $30,421.78 or $30,422 at the end of 10 years.
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