Question

Connie made deposits of $2,000 at the beginning of each year for four years. the rate she earned is 5% annually. what is the value of connie's account in four years?

Answer 1

To get the value of Connie's deposits we use the future value of annuity:
FV=P[((1+r)^n-1)/r]
where:
P=periodic deposits
r=rate
n=time
thus plugging our values in the formula we get:
FV=2000[((1+0.05)^4-1)/0.05]
FV=$8620.25

Answer: $8620.25