At the end of every year you deposit $2,000 into an account that earns 7% interest per year.

At the end of every year you deposit $2,000 into an account that earns 7% interest per year. What will be the balance in your account immediately after the 30^th deposit?

Solutions

Expert Solution

Future value of an ordinary annuity = P{[(1 + r)^n - 1] / r}

Future value of an ordinary annuity = $2,000{[(1 + 0.07)^30 - 1] / 0.07}

Future value of an ordinary annuity = $188,921.57

jeff jeffy answered 1 year ago

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