Question

A high-interest savings account pays 5.5% interest compounded annually. If $300 is deposited initially and again at the first of each year, which summation represents the money in the account 10 years after the initial deposit?

Answer 1

That is an annuity and use the attached formula.

Total = 300 * [(1.055)^11 -1] / .055 -300
Total = 300 * 1.8020924036  -1 /.055 -300
Total = 300 * .8020924036 / .055 - 300
Total = 300 * 14.5834982473 -300
Total = 4375.0494741818 -300
Total = 4075.05