You win $1000 today which happens to be your 20^th birthday. You decide to deposit this money in an account and plan to add $1000 to it each year on your birthday beginning one year from today. If you earn 10% per year in the account, how long will it take to grow to $750,000?

Question

Quizplus · Accepted Answer

The problem involves calculating the future value of an annuity with an initial deposit. Using the future value of an annuity formula and solving for the number of years, it takes approximately 44.44 years for the account to grow to $750,000 with annual deposits of $1000 and a 10% interest rate.

You Win $1000 Today Which Happens to Be Your 20th

You Win $1000 Today Which Happens to Be Your 20^th