Nino plans to initially contribute $10,000 and increase his yearly contributions by 2% each year for 15 years. If the rate of interest is 4% compounded annually, determine how much the investment will be worth in 15 years.

Question

Quizplus · Accepted Answer

The future value of a growing annuity formula is used here. The initial contribution is $10,000, growing at 2% annually, with a 4% interest rate compounded annually over 15 years. Calculating this gives approximately $227,537.58.

Nino Plans to Initially Contribute $10,000 and Increase His Yearly