Question

Jessica deposits $5,000 at the end of each year in an account earning 2.45% interest, compounded annually. What is the future value of this annuity after 5 years of investing?

$25,246.20
$13,127.69
$52,510.76
$26,255.38

Answer 1

I got $26,255.38 as my answer but I'm not sure if it's right

Answer 2

I can check if you'd like.

Answer 3

yes please

Answer 4

KK

Answer 5

5000 times 5 to start, because she adds this much at the end of each year. This gives you 25,000.
Now you can eliminate B and C.
Next, plug everything into the equation A=P*e^rt. This should give you A. $25, 246.20.

Answer 6

A

Answer 7

hope I have helped!!\[BYE\]

Answer 8

Time = 0 Years: 0
Time = 1 Years: 5000
Time = 2 Years: 5000(1.0245) + 5000
Time = 3 Years: 5000(1.0245)^2 + 5000(1.0245) + 5000
Time = 4 Years: 5000(1.0245)^3 + 5000(1.0245)^2 + 5000(1.0245) + 5000
Time = 4 Years: 5000(1.0245)^4 + 5000(1.0245)^3 + 5000(1.0245)^2 + 5000(1.0245) + 5000

Algebra: 5000(1 + 1.0245 + 1.0245^2 + 1.0245^3 + 1.0245^4) = \(5000\dfrac{1.0245^{5} - 1}{1.0245 - 1}\)

= 5000(5.251076408) = $26,255.38

If you learn to build it, you need never be anything but confident.

Answer 9

thanks a lot for the explanation it really helped!