Question

A periodic deposit is made into an annuity with the given terms. Find how much the annuity will hold at the end of the specified amount of time. Round your answer to the nearest dollar. Regular deposit: $1550 Interest rate: 4.7% Frequency daily Time: 18 years

Answer 1

Assuming the periodic deposit is made daily into the annuity at 4.7% compounded daily, the future value of the annuity will be $16,011,688.49 at the end of 18 years.

The future value can be computed using an online finance calculator. In this situation, it is assumed that the periodic deposit is daily since this was not specified.

N (# of periods) = 6,570 (18 years x 365 days)

I/Y (Interest per year) = 4.7%

PV (Present Value) = $0

PMT (Periodic Payment) = $1,550

Results

FV = $16,011,688.49

The sum of all periodic payments = $10,183,500.00

Total Interest $5,828,188.49