Personal Finance 1st Edition by Jack R. Kapoor

Exercise 26

Calculating the Future Value of a Series of Amounts. Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $80 for this service. Over a period of 10 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 3 percent on her savings. (Obj. 4)

Step 1 of 2

To answer this question, we should use the formula of Future value of a series amount or an annuity.

Formula of Future value of a series amount or an annuity:

Where,