Solve the problem.
-Suppose you invest $\$ 6569$ at the end of each year into an account earning $5 \%$ interest (compounded annually). At the end of 5 years, how much money will be in the account?
A) $\$ 36,297.87$
B) $\$ 167,677.90$
C) $\$ 35,481.80$
D) $\$ 36,134.30$

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used: $FV = P \times \frac{(1 + r)^n - 1}{r}$. Here, $P = 6569$, $r = 0.05$, and $n = 5$. Calculating gives $FV = 6569 \times \frac{(1.05)^5 - 1}{0.05} = 36,297.87$.

Solve the Problem $6569\$ 6569$6569 At the End of Each Year into an Account Earning

Solve the Problem $\$ 6569$ At the End of Each Year into an Account Earning