Sondra deposits $2,000 in an IRA account on April 15, 2009. Assume the account will earn 3% annually. If she repeats this for the next nine years, how much will she have on deposit on April 14, 2019?
A)$20,600.
B)$20,728.
C)$23,616.
D)$24,715.FVAD = $2,000 x 11.8078* = $23,616 *FVAD of $1: n=10; i=3%

Question

Quizplus · Accepted Answer

Using the formula for future value of an annuity due, we get: FVAD = $2,000 x 11.8078* = $23,616. Therefore, Sondra will have $23,616 on deposit on April 14, 2019.

Sondra Deposits $2,000 in an IRA Account on April 15