Assume that $500 is deposited at the end of each year in an account in which interest is compounded annually at a rate of 8%.Find the accumulated amount after 12 years.Round to the nearest cent.
A)$9,488.56
B)$8,065.28
C)$9,988.56
D)$6,291.99
E)$6,641.99

Question

Quizplus · Accepted Answer

The accumulated amount can be calculated using the future value of an annuity formula: $ FV = P \times \frac{(1 + r)^n - 1}{r} $, where $ P = 500 $, $ r = 0.08 $, and $ n = 12 $. Plugging in the values, $ FV = 500 \times \frac{(1 + 0.08)^{12} - 1}{0.08} \approx 9,488.56 $.

Assume That $500 Is Deposited at the End of Each