Starting today, a series of annual desposits is made into a account offering 8 percent compounded...

Starting today, a series of annual desposits is made into a account offering 8 percent compounded annually. The first deposit is $2,000. The second deposit is 2 percent smaller , the first, that is 2000(.98)^1. The third deposit is 2% smaller than the second, that $2,000(.98)^2. This pattern of declining deposits, with each deposit being 2 percent smaller than the previous one, continues until the last deposit is made at the end of year 40, that is, years from today. What will be the balance in the account at the end of year 40, immediate after the last deposit is made?

please show all work algebraically and the explanation. thanks in advance

Expert Solution

Answer

Therefore at the end of 40 years investment value will be $425,576.42, Which is explained as follows;

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jeff jeffy answered 2 years ago

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