If you deposit 4800 at the end of each of the next 15 years

If you deposit $4,800 at the end of each of the next 15 years into an account paying 11.3 percent interest, how much money will you have in the account in 15 years?

How much will you have if you make deposits for 30 years?

Solution

You can solve this question by using simply Future value Of an annuity factor formula i.e = [(1+i)ⁿ - 1]/i

i= interest rate

n= number of years

FVAF(15 years) = [(1+0.113)¹⁵ - 1]/ 0.113 = 3.9823/0.113 = 35.2413

Future value of this annuity after 15 years = 4800*35.2413 = $169,158.

FVAF(30 years) =  [(1+0.113)³⁰ - 1]/ 0.113 = 23.823/0.113 = 210.8233

Future value of this annuity after 30 years = 4800* 210.8233= $1,011,952.