A woman deposits 8000 at the end of each year for 11 years i

A woman deposits $8000 at the end of each year for 11 years in an account paying 7% interest compounded annually. Find the final amount she will have on deposit. Her brother-in-law works in a bank that pays 6% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? How much would she lose over 11 years by using her brother-in-law\'s bank? She will have a total of $ on deposit.

Solution

A = $16,838.82

=~$16,839

Step by step Solution:

A = P(1 + r/n)^nt

Where:

where n = 1 (compounded once per period or unit t)