Assume that you deposit 681 each year for the next 15 years

Assume that you deposit $ 681 each year for the next 15 years into an account that pays 14 percent per annum. The first deposit will occur one year from today (that is, att - 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign). Your Answer:

Solution

Answer:

Given data Pricipal amount(p) =$681

Rate of interest (r) =14%

Term(t) =15 years

Accumulated amount = interest+principal

= PTR + P*15

=(681*15*14% ) + ( 681*15)

=1430.1+10215

=$11645.1