Question: You decide to start saving today so that you can buy yourself a new car six years from now. Today you deposit $2,800 into an
You decide to start saving today so that you can buy yourself a new car six years from now. Today you deposit $2,800 into an account. You will make 5 subsequent $2,800 deposits into the account, with the first deposit to be made exactly 1 year from today and each subsequent deposit to be made 1 year after the previous deposit. No other deposits into or withdrawals from the account are made. If the account generates a return of 6% per year compounded annually, what will the value of the account be 6 years from today? Round all intermediate calculations to 6 decimal points. Your final answer should be within $5 of the correct answer choice. $18,583.86$20,702.75$15,783.86$19,530.89
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
