If for the next 40 years you place $3,000 in equal year-end-deposits into an account earning 8% per year,how much money will be in the account at the end of that time period?
A)$120,000.00
B)$777,169.56
C)$839,343.12
D)$2,606,942.58

Question

Quizplus · Accepted Answer

The future value of an annuity is calculated using the formula:FV = PMT * (((1 + r)^n - 1) / r)where:PMT is the annual paymentr is the annual interest raten is the number of yearsIn this case, PMT = $3,000, r = 8%, and n = 40. Plugging these values into the formula, we get:FV = $3,000 * (((1 + 0.08)^40 - 1) / 0.08)= $3,000 * (259.0827 - 1) / 0.08= $3,000 * 258.0827 / 0.08= $777,169.56Therefore, the correct answer is B) $777,169.56.

If for the Next 40 Years You Place $3,000 in Equal