3000 is deposited in an account at the end of each of nine y

$3,000 is deposited in an account at the end of each of nine years. What is the future value of those deposits assuming market rate of interest of 12% compounded annually?

Solution

Present Value of Deposits = $ 3,000 * 1/(1.12) ^ 1 + $ 3,000 * 1/(1.12) ^ 2 + $ 3,000 * 1/(1.12) ^3+..+ $ 3,000 * 1/(1.12) ^9

= $ 15,984.75

Future Value of Deposits =Present Value of Deposits * (1+ Rate of Interest /100) ^ Time

= $ 15,984.75 * ( 1+ 12/100) ^ 9

= $ 44,326.97067

= $ 44,326.97

Hence the correct answer is $ 44,326.97