Assume that $100 is deposited at the end of each year in an account in which interest is compounded annually at a rate of 10%.Find the accumulated amount after 4 years.Round to the nearest cent.
A)$464.10
B)$664.10
C)$564.10
D)$414.10
E)none of the above

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used: $ FV = P \times \frac{(1 + r)^n - 1}{r} $, where $ P = 100 $, $ r = 0.10 $, and $ n = 4 $. Calculating gives $ FV = 100 \times \frac{(1.1)^4 - 1}{0.1} = 100 \times 4.641 = 464.10 $.

Assume That $100 Is Deposited at the End of Each