Assume that $300 is deposited at the end of each year in an account in which interest is compounded annually at a rate of 9%.Find the accumulated amount after 10 years.Round to the nearest cent.
A)$4,557.88
B)$4,857.88
C)$1,419.29
D)$3,038.59
E)$1,519.29

Question

Quizplus · Accepted Answer

The accumulated amount can be calculated using the future value of an annuity formula: $ FV = P \frac{(1 + r)^n - 1}{r} $, where $ P = 300 $, $ r = 0.09 $, and $ n = 10 $. Plugging in these values gives $ FV = 300 \frac{(1 + 0.09)^{10} - 1}{0.09} \approx 4,557.88 $.

Assume That $300 Is Deposited at the End of Each