It's the first day of the year and you currently have $4,500 in the bank. You plan to deposit $600 at the end of every year for the next 55 years, with the first payment made 1 year from now (from t=1 to t=55 inclusive). If bank interest rates are 3% pa, how much money will be in your bank account a moment after making your last deposit in 55 years?

Answer rating: 100% (QA)

This is a future value of an annuity due problem We can use the formula FV PMT x 1 rn 1 r x 1 r ... View the full answer