You decide to save $7,000 at the end of each year for the next 11 years....

You decide to save $7,000 at the end of each year for the next 11 years. If your savings earn an annual interest rate of 4%, how much will you have saved up by the end of 11 years? Round to the nearest cent.

Solutions

Expert Solution

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=7000*[(1.04)^11-1]/0.04

=7000*13.4863514

which is equal to

=$94404.46(Approx)

jeff jeffy answered 1 year ago

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