Question

If you deposit $4,800 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the account in 20 years? (do not round intermediate calculations and round your final answer to 2 decimal places,

e.g., 32.16.)

Answer 1

Given that $4800 is invested at the rate of 10.8% in 20 years, the future value of the money will be:
A=P(1+r/100)^n
where:
A=future amount
P=principle=$4800
r=rate=10.8%
n=time=20 years;
Thus
A=4800(1+10.8/100)^20
A=$4800(1.108)^20
A=$37,328.15
Thus the amount after 20 years will be $37,328.15