Question

Johanna wants to start saving for a vacation and plans to put four annual deposits of $1200 each into an account earning 5 percent, compounded annually. How much will she have in her account in four years

Answer 1

$5,430.76

Step-by-step explanation:

For this question, we use the Future value formula that is shown on the attachment. Kindly find it below:

Data provided in the question

Present value = $0

Rate of interest = 5%

NPER = 4 years

PMT = $1,200

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $5,430.76