Question

If Jim deposits $5,000 at the beginning of each year for 10 years in an account paying 5% interest compounded annually, find the amount he will have at the end of the 10 years.

Answer 1

1 year:
Deposits: 5000
Interest: 250
Total: 5250
10 years:
Deposits: 5000 x 10
= 50000
Interest: 250 x 10
= 2500
Total: 52500