How much Jim can accumulate in a private pension fund over 20 years if the fund offers 5% interest compounded annually, and he can afford to deposit $2 000 at the end of every second year?
A)$28 946
B)$32 259
C)$66 132
D)$94 256
E)$117 853

Question

Quizplus · Accepted Answer

Jim makes 10 deposits of $2,000 each at the end of every second year. Using the future value of an annuity formula for compound interest, the future value is calculated as $32,259.

How Much Jim Can Accumulate in a Private Pension Fund