If you put $510 in a savings account at the beginning of each year for 30 years, how much money will be in the account at the end of the 30th year? Assume that the account earns 5%, and round to the nearest $100.
A) $33,300
B) $32,300
C) $33,900
D) None of the above

Question

Quizplus · Accepted Answer

This is a future value of an annuity problem, where you're calculating the future value of a series of equal payments made at regular intervals. The formula for the future value of an annuity is FV = P * [((1 + r)^n - 1) / r], where P is the payment amount, r is the annual interest rate, and n is the number of payments. Plugging in the values (P = $510, r = 0.05, n = 30), the calculation does not match any of the provided options exactly when rounded to the nearest $100, indicating that the correct answer must be calculated and is not listed among the options provided.

If You Put $510 in a Savings Account at the Beginning