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Andrei [34K]
4 years ago
11

Your department at work places $10,000 every year-end into an account earning 5%. The money is used when the corporate office fa

ils to fully finance your profitable projects. The money has not been touched since a first deposit was made exactly six years ago. If the most recent deposit was made today, how much money is currently in the account?
A) $55,256.31
B) $68,019.13
C) $81,420.08
D) $60,000
Business
1 answer:
Jobisdone [24]4 years ago
4 0

Answer:

68,019.13

Explanation:

this particular question can be solved, using an approach by the annuity concept, remember that an annuity is usefull for calculating the present or future value of a series of regular payments, so in this case we are asked to calculate the future value as follows:

s_{n} =P*\frac{(1+i)^{n}-1 }{i}

where s_{n} is the future value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

s_{6} =10,000*\frac{(1+0.05)^{6}-1 }{0.05}

s_{6} =68,019.13

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