If $22,000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually, what will be the balance of the account at the end of 10 years?
A) $23,100
B) $231,000
C) $276,714
D) $303,600

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used: FV = P * [(1 + r)^n - 1] / r, where P = $22,000, r = 0.05, n = 10. Plugging in the values gives FV = $22,000 * [(1.05)^10 - 1] / 0.05 = $276,714.

If $22,000 Is Deposited in a Savings Account at the End