Question

Barbara is starting an investment program. She will invest $1,000 every year, with the first payment made today. She will make a total of 20 payments and will earn 6%. How much will she have at the end of 20 years?

Answer 1

FV =( P *( {(((1+R)^(N+1)) - 1) / R}-1)
=1000*(((((1+6%)^(20+1))-1)/6%)-1)
FV	38,992.73
Cross Check
Year	Period of Investment	Amount Invested	Amount with interest
0	20	1,000	3,207.14	=1000*(1+6%)^20
1	19	1,000	3,025.60	=1000*(1+6%)^19
2	18	1,000	2,854.34	=1000*(1+6%)^18
3	17	1,000	2,692.77	=1000*(1+6%)^17
4	16	1,000	2,540.35	=1000*(1+6%)^16
5	15	1,000	2,396.56	=1000*(1+6%)^15
6	14	1,000	2,260.90	=1000*(1+6%)^14
7	13	1,000	2,132.93	=1000*(1+6%)^13
8	12	1,000	2,012.20	=1000*(1+6%)^12
9	11	1,000	1,898.30	=1000*(1+6%)^11
10	10	1,000	1,790.85	=1000*(1+6%)^10
11	9	1,000	1,689.48	=1000*(1+6%)^9
12	8	1,000	1,593.85	=1000*(1+6%)^8
13	7	1,000	1,503.63	=1000*(1+6%)^7
14	6	1,000	1,418.52	=1000*(1+6%)^6
15	5	1,000	1,338.23	=1000*(1+6%)^5
16	4	1,000	1,262.48	=1000*(1+6%)^4
17	3	1,000	1,191.02	=1000*(1+6%)^3
18	2	1,000	1,123.60	=1000*(1+6%)^2
19	1	1,000	1,060.00	=1000*(1+6%)^1
Total Amount			38,992.73