If Mary deposits $4,000 a year for 3 years, starting a year from today, followed by...

If Mary deposits $4,000 a year for 3 years, starting a year from today, followed by 3 annual deposits of

$5,000, into an account that earns 8% per year, how much money will she have accumulated in her

account at the end of 10 years?

Solutions

Expert Solution

Year	Cash deposit	FV factor (1+8%)^(10-t)	FV factor * Cash deposit
1	4000	1.9990	$ 7,996.02
2	4000	1.8509	$ 7,403.72
3	4000	1.7138	$ 6,855.30
4	5000	1.5869	$ 7,934.37
5	5000	1.4693	$ 7,346.64
6	5000	1.3605	$ 6,802.44
		Total future value	$ 44,338.49

jeff jeffy answered 1 year ago

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