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Homework answers / question archive / Derek will deposit $5,216
Derek will deposit $5,216.00 per year for 13.00 years into an account that earns 4.00%.The initial deposit is made 5.00 years from today, how much will be in the account 35 years from now?
Computation of Account Balance 35 Years from Now:
USING FINANCIAL CALCULATOR
N =13 years since the deposits shall be for 13 years
At the end of 17 years
N = 13
I/Y = 4%
PV =0
PMT = $5,216
CPT FV = $86,725.59
At the end of 35 years = There will be 18 years left
N=18
I/Y = 4%
PV =$86,725.59
PMT =0
CPT FV = $175,690.12
Hence at the end of 35 years $175,690.12 shall be acculmulated.