Question

Interest and You Today you deposit $1,000 in an account earning 5%. Every year for the next 30 years, you deposit $1,000. At the end of the 30 years, you will have: A. $30,000 This answer is based on compound interest. c. $31,500 $51,253 $66,438 c ato Cari 2018 Merowie Education. All rights reserved. No reproduction or distribution without prior written consent of Mer

Answer 1

CACLULATION OF FUTURE VALUE OF INVESTMENT
Years	Cash Inflow	Interest @ 5 %	Present Value (A XB)
1	1,000.00	$                                 -	$           1,000.00
2	1,000.00	$                          50.00	$           2,050.00
3	1,000.00	$                        102.50	$           3,152.50
4	1,000.00	$                        157.63	$           4,310.13
5	1,000.00	$                        215.51	$           5,525.63
6	1,000.00	$                        276.28	$           6,801.91
7	1,000.00	$                        340.10	$           8,142.01
8	1,000.00	$                        407.10	$           9,549.11
9	1,000.00	$                        477.46	$         11,026.56
10	1,000.00	$                        551.33	$         12,577.89
11	1,000.00	$                        628.89	$         14,206.79
12	1,000.00	$                        710.34	$         15,917.13
13	1,000.00	$                        795.86	$         17,712.98
14	1,000.00	$                        885.65	$         19,598.63
15	1,000.00	$                        979.93	$         21,578.56
16	1,000.00	$                    1,078.93	$         23,657.49
17	1,000.00	$                    1,182.87	$         25,840.37
18	1,000.00	$                    1,292.02	$         28,132.38
19	1,000.00	$                    1,406.62	$         30,539.00
20	1,000.00	$                    1,526.95	$         33,065.95
21	1,000.00	$                    1,653.30	$         35,719.25
22	1,000.00	$                    1,785.96	$         38,505.21
23	1,000.00	$                    1,925.26	$         41,430.48
24	1,000.00	$                    2,071.52	$         44,502.00
25	1,000.00	$                    2,225.10	$         47,727.10
26	1,000.00	$                    2,386.35	$         51,113.45
27	1,000.00	$                    2,555.67	$         54,669.13
28	1,000.00	$                    2,733.46	$         58,402.58
29	1,000.00	$                    2,920.13	$         62,322.71
30	1,000.00	$                    3,116.14	$         66,438.85
Value of the investment is at 30th year = $ 66,438.85
	Answer = Option D = $ 66,438