$9000 is deposited into a savings account at the end of each year for 20 years. If the account pays 10% interest per year, how much value will the account have at the end of the 20 year period?

$9000 is deposited into a savings account at the end of each year for 20 years. If the account pays 10% interest per year, how much value will the account have at the end of the 20 year period?

 

 

Answer:

F = A(F/A, i, n)

= 9000(F/A, 10%, 20)

= 9000(57.275)

= $515,475

Thus, the account have $515,475 at the end of the 20 year period.

Asked on February 15, 2018 in economics.
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