If you put $310 in a savings account at the beginning of each year for 10 years,how much money will be in the account at the end of the 10th year? Assume that the account earns 5.5%,and round to the nearest $100.
A)$3,800
B)$3,900
C)$4,000
D)$4,200

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used to calculate the total amount in the account. The formula is FV = P * [((1 + r)^n - 1) / r], where P is the annual payment ($310), r is the annual interest rate (5.5% or 0.055), and n is the number of years (10). Plugging in the values, FV = 310 * [((1 + 0.055)^10 - 1) / 0.055] ≈ $4,200.

If You Put $310 in a Savings Account at the Beginning