Question: After receiving an inheritance of $25,000 on her 21st birthday, Ayn Rand deposited the inheritance in a savings account with an effective annual interest rate

After receiving an inheritance of $25,000 on her 21st birthday, Ayn Rand deposited the inheritance” in a savings account with an effective annual interest rate of 6%. She decided that she would make regular deposits on each future birthday, beginning with $1000 on her 22nd birthday and then increasing the amount by $200 in each following year (i.e., $1200 on her 23rd birthday, $1400 on her 24th birthday, etc.). What was the future worth of Ayn's deposits on her 56th birthday?

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F 56 25000 FP 6 35 1000 FA 6 35 200 PG 6 35 FP 6 ... View full answer

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