At the end of every year for 45 years Sabrina invested $500 into her retirement plan. The plan has earned 13% compounded annually over the 45 years. She made the last deposit today. How much money has she accumulated?
A) $1,783,603
B) $937,082
C) $480,583
D) $318,675
E) $157,950

Question

Quizplus · Accepted Answer

Sabrina's investment is a future value of an annuity problem. Using the formula for the future value of an annuity compounded annually: FV = P * [(1 + r)^n - 1] / r, where P = $500, r = 0.13, and n = 45, the accumulated amount is approximately $937,082.

At the End of Every Year for 45 Years Sabrina