Question

derek will deposit $1,999 per year for 15 years into an account that earns 4% . Assuming the first deposit is made 4 years from today, how much will be in the account 38 years from today?

Answer 1

1. Future value value of annuity deposits at the end of 19 years (Here we are taking 19 years because first deposit starts at 4 years for 15 years): $40027.15

2. Future value of $40027.15 at the year 38: $84331.17

Future value in account after 38 years from today = $84331.17