you deposit 749 in a credit union at the end of each year fo

you deposit 749$ in a credit union at the end of each year for 5 years the credit union pays 5 percent intrest compounded annually immedietly after the 5th deposit how much can you withdrawl from your acount??

please help

Solution

You deposit 749$ in a credit union at the end of each year for 5 years the credit union pays 5 percent interest compounded annually immediately after the 5th deposit how much can you withdrawal from your account?

Annual deposits = $749

Number of years = 5 years

Rate of interest = 5% compounded annually

What will be the future value? (immediately after the 5th deposit how much can you withdrawal from your account)

FV = A (F/A, i, n)

FV = $749 (F/A, 5%, 5)

Value of (F/ A, 5%, 5) from the compound interest table is equal to 5.5256

FV = $749 (5.5256)

FV = $4,139

Immediately after the 5th deposit you can withdraw $4,139 from your account.