Margaret plans to deposit $500 on the first day of each of the next five years,beginning today.If she earns 4% compounded annually,how much will she have at the end of five years?
A) $2,708.16
B) $2,816.49
C) $3,041.63
D) $1,560.80
E) $2,041.63

Question

Quizplus · Accepted Answer

FV = PMT × 11ea7fdb_fc17_44ef_a768_43bece3d5e3d_TB2902_11 × 11ea7fdb_fc17_44f0_a768_81fc75428144_TB2902_11 FV = 500 × 11ea7fdb_fc17_44f1_a768_990ed4542c58_TB2902_11 × 11ea7fdb_fc17_44f2_a768_ef9a8684a73d_TB2902_11 = $2,816.49
Using a financial calculator:
N = 5, I/Y = 4, PV = 0, PMT = -500, cpt FV = 2,708.16
2,708.16 × 1.04 = $2,816.49

Margaret Plans to Deposit $500 on the First Day of Each