Assume that $100 is deposited at the end of each year in an account in which interest is compounded annually at a rate of 10%.Find the accumulated amount after 4 years.Round to the nearest cent.
A)$464.10
B)$614.10
C)$364.10
D)$564.10
E)none of the above

Question

Quizplus · Accepted Answer

The future value of an annuity is given by the formula:FV = P * ((1 + r)^n - 1) / rwhere:P is the amount of each paymentr is the annual interest raten is the number of yearsIn this case, P = 100, r = 0.10, and n = 4. Plugging these values into the formula, we get:FV = 100 * ((1 + 0.10)^4 - 1) / 0.10= 100 * (1.4641 - 1) / 0.10= 100 * 0.4641= 46.41Rounding to the nearest cent, the accumulated amount after 4 years is $464.10.

Assume That $100 Is Deposited at the End of Each