Derek will deposit $5,216

Finance Jan 31, 2021

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?

Expert Solution

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.

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