You deposit 1500 at the end of each year into an account pay

You deposit $1,500 at the end of each year into an account paying 8.1 percent interest. Required: (a) How much money will you have in the account in 18 years? (b) How much will you have if you make deposits for 36 years?

Solution

PMT = 1500, PV = 0, rate = 81% , N = 18

use FV function in Excel

amount after 18 years = 56,724.94

replace N with 36

amount after 36 years = 287,206.67