It is January 1 and you have made a New Year’s resolution to invest $5,000 in a savings account at the end of every year for the next 30 years. If your money is compounded at an average annual rate of 9%, how much will you have accumulated at the end of 30 years?

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It is January 1 and you have made a New Year’s resolution to invest $5,000 in a savings account at the end of every year for the next 30 years. If your money is compounded at an average annual rate of 9%, how much will you have accumulated at the end of 30 years?

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Answer:

FVA30 = PMT(FVIFA9%,30),

FVA30 = $5,000(136.308) = $681,540

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