Question

Steve House will make 7 annual deposits of $15,000 beginning 1/1/15 into a savings account. He will then make 8 annual deposits of $20,000 beginning 1/1/22 into the same account. How much will be in his account after his last deposit on 1/1/29 if he estimates he can earn 5%? Round all calculations to the nearest dolla

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Answer 1

Solution:

Computation of amount accumulated in account
Date	Beginning Balance	Deposit	Interest	Ending Balance
1-Jan-15	$0.00	$15,000.00	$0.00	$15,000.00
1-Jan-16	$15,000.00	$15,000.00	$750.00	$30,750.00
1-Jan-17	$30,750.00	$15,000.00	$1,537.50	$47,287.50
1-Jan-18	$47,287.50	$15,000.00	$2,364.38	$64,651.88
1-Jan-19	$64,651.88	$15,000.00	$3,232.59	$82,884.47
1-Jan-20	$82,884.47	$15,000.00	$4,144.22	$102,028.69
1-Jan-21	$102,028.69	$15,000.00	$5,101.43	$122,130.13
1-Jan-22	$122,130.13	$20,000.00	$6,106.51	$148,236.63
1-Jan-23	$148,236.63	$20,000.00	$7,411.83	$175,648.46
1-Jan-24	$175,648.46	$20,000.00	$8,782.42	$204,430.89
1-Jan-25	$204,430.89	$20,000.00	$10,221.54	$234,652.43
1-Jan-26	$234,652.43	$20,000.00	$11,732.62	$266,385.05
1-Jan-27	$266,385.05	$20,000.00	$13,319.25	$299,704.31
1-Jan-28	$299,704.31	$20,000.00	$14,985.22	$334,689.52
1-Jan-29	$334,689.52	$20,000.00	$16,734.48	$371,424.00

Therefore amount accumulated in account = $371,424