Suppose that you place $450 in a bank account each year for the next 20 years.How much would be in your bank account at the end of the twentieth year if the deposits earned an annual rate of return of 6% each year?
A)$9,540.00
B)$10,876.31
C)$14,729.44
D)$16,553.52

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used to calculate the total amount in the account: FV = P * [(1 + r)^n - 1] / r, where P is the annual deposit ($450), r is the annual interest rate (0.06), and n is the number of years (20). Plugging in these values gives the future value of $16,553.52.

Suppose That You Place $450 in a Bank Account Each