If for the next 35 years you place $4,000 in equal annual year-end-deposits into an account earning 8% per year,how much money will be in the account at the end of that time period?
A)$689,267.21
B)$777,169.56
C)$839,343.12
D)$2,606,942.58

Question

Quizplus · Accepted Answer

The correct answer is A because the future value of an annuity is calculated using the formula FV = PMT * (((1 + r)^n - 1) / r), where PMT is the annual payment, r is the annual interest rate, and n is the number of years. In this case, PMT = $4,000, r = 8%, and n = 35. Plugging these values into the formula, we get FV = $4,000 * (((1 + 0.08)^35 - 1) / 0.08) = $689,267.21.

If for the Next 35 Years You Place $4,000 in Equal