A deposit of $4,000 at the beginning of each year will grow to $1,081,170 in 30 years if invested at12% compounded annually.

Question

Quizplus · Accepted Answer

This is a simple annuity due problem, where $4,000 is deposited at the beginning of each year for 30 years at a 12% annual interest rate. Using the annuity due formula, we can calculate the future value to be approximately $1,081,170. Therefore, the statement is true.

A Deposit of $4,000 at the Beginning of Each Year