Show all of your work to arrive at final result for full cre

Show all of your work to arrive at final result for full credit

1) What is the accumulated amount resulting from a series of equal yearly deposits of $1,000 for 6 years if the interest rate is 9% per year compounded yearly? Assume that the first deposit is made 1 year from now.

Solution

Accumulated future worth ($) = 1,000 x F/A(9%, 6) = 1,000 x 7.5233** = 7,523.3

**F/A(r%, N) = [(1 + r)^N - 1] / r

F/A(9%, 6) = [(1.09)⁶ - 1] / 0.09 = (1.6771 - 1) / 0.09 = 0.6771 / 0.09 = 7.5233