If you put $10 in a savings account at the beginning of each year for 11 years,how much money will be in the account at the end of the 11th year? Assume that the account earns 11%,and round to the nearest $100.
A)$220
B)$200
C)$190
D)$180

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used to calculate the total amount in the account. The formula is FV = P * [((1 + r)^n - 1) / r], where P is the annual payment ($10), r is the interest rate (0.11), and n is the number of years (11). Plugging in these values, FV = 10 * [((1 + 0.11)^11 - 1) / 0.11] ≈ $220.

If You Put $10 in a Savings Account at the Beginning