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andrezito [222]
2 years ago
12

BobCat Inc. will deposit $20,000 in an 8% fund at the end of each year for 8 years beginning December 31, Year 1. What amount wi

ll be in the fund immediately after the last deposit?
Business
1 answer:
zavuch27 [327]2 years ago
6 0

Answer:

FV= $198,456.07

Explanation:

Giving the following information:

Annual deposit= $20,000

Interest rate= 8%

Number of periods= 8 years

<u>To calculate the future value after the last deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {20,000*[(1.08^7) - 1]}  / 0.08 + 20,000

FV= 178,456.07 + 20,000

FV= $198,456.07

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