Connie made deposits of $2,000 at the beginning of each year for four years. The rate she earned is 5% annually. What is the value of Connie's account in four years?

Question

Quizplus · Accepted Answer

The future value of an annuity due can be calculated using the formula: FV = P * [(1 + r)^n - 1] * (1 + r) / r. Here, P = $2,000, r = 0.05, n = 4. Plugging in these values gives FV = $2,000 * [(1.05)^4 - 1] * 1.05 / 0.05 = $9,051.20.

Connie Made Deposits of $2,000 at the Beginning of Each