Question

Derek will deposit $5,678.00 per year for 15.00 years into an account that earns 13.00%, The first deposit is made next year. He has $10,763.00 in his account today. How much will be in the account 38.00 years from today?

Answer format: Currency: Round to: 2 decimal places.

Answer 1

PMT or annual deposit =5678
Number of Years =15
Rate =13%
PV of Deposit today =10763
Value of Deposit at year 15 =PV*(1+r)^n+PMT*((1+r)^n-1)/r) =10763*(1+13%)^15+5678*((1+13%)^15-1)/13%) =296805.0752

Value of deposit in year 38 =Value of Deposit at year 15*(1+r)^23 =296805.0752*(1+13%)^23=4934867.80