Question 3 You deposit $$ \$ 5000 $$ each year into an account earning $$ 8 \% $$ interest compounded annually. How much will you have in the account in 30 years? Note: Round your answer to the nearest cent. Check Answer

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We are dealing with an ordinary annuity where you deposit an amount $$ P $$ at the end of each year at an interest rate $$ r $$ for $$ n $$ years. The future value $$ FV $$ is given by:

$$
FV = P \left(\frac{(1+r)^n - 1}{r}\right)
$$

Given:
- $$ P = 5000 $$
- $$ r = 0.08 $$
- $$ n = 30 $$

Substitute the values into the formula:

$$
FV = 5000 \left(\frac{(1+0.08)^{30} - 1}{0.08}\right)
$$

First, calculate $$ (1+0.08)^{30} $$:

$$
(1.08)^{30} \approx 10.06266
$$

Subtract 1:

$$
10.06266 - 1 = 9.06266
$$

Divide by $$ 0.08 $$:

$$
\frac{9.06266}{0.08} \approx 113.28325
$$

Finally, multiply by $$ 5000 $$:

$$
FV = 5000 \times 113.28325 \approx 566416.26
$$

Thus, after 30 years, you will have approximately $$ \$566{,}416.26 $$ in the account.
After 30 years, you will have approximately \$566,416.26 in the account.

Question 3
You deposit each year into an account earning interest compounded annually. How
much will you have in the account in 30 years?
Note: Round your answer to the nearest cent.
Check Answer

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Question 3 You deposit each year into an account earning interest compounded annually. How much will you have in the account in 30 years? Note: Round your answer to the nearest cent. Check Answer