Daniel deposits $2,000 per year at the end of the year for the next 15

QUESTION

Daniel deposits $2,000 per year at the end of the year for the next 15 years into an IRA account that currently pays 7%. How much will Daniel have on deposit at the end of 15 years?
Each Year Deposited Amount (PMT) = $2,000 Interest rate per period (i) = 7% Number of Period (n) = 15 years Future Value of an Ordinary Annuity (FVoa) = ? Future Value of an Ordinary Annuity (FVoa) = PMT[((1 i) n -1) / i] = $2,000 [ ((1 0.07) 15 -1) / 0.07] =

000 [(1.07) 15 -1 / 0.07] =$2,000 [(2.579 1) / 0.07] =$2,000 [ 1.759 / 0.07] =$2,000 * 25.12857 = $50,257.14 Total Deposited Amount at the end of the 15 th year = $50,257.14

ANSWER:

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