Question

In: Finance

Since your first birthday, your grandparents have been depositing $1200 into a savings account on every...

Since your first birthday, your grandparents have been depositing $1200 into a savings account on every one of your birthdays. The account pays 6% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to ________.

Group of answer choices

$ 21,600.00

$ 12,993.12

$ 41,632.67

$ 44,504.14

$ 22,252.07

$ 37,086.78

Solutions

Expert Solution

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=1200[(1.06)^18-1]/0.06

=1200*30.9056525

=$37086.78(Approx)

jeff jeffy answered 2 years ago
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