Personal Finance 1st Edition by Jack R. Kapoor

Exercise 19

Computing Future Value. Calculate the future value of a retirement account in which you deposit $2,000 a year for 30 years with an annual interest rate of 6 percent. (Use the tables in the Chapter 1 appendix.)

Step 1 of 2

An annuity amount of $2,000 will be deposited for 30 years in a retirement account which pays 6% interest rate.

The value of the annuity amount will be grown after 30 years at stated interest rate. This value is known as future value of an annuity.