SOLUTION: You invest $250 in your savings account at the end of each year and earn an avaerage of 6% per year in interest. How much will you have in your savings at the end of forty years?

Question 121460: You invest $250 in your savings account at the end of each year and earn an avaerage of 6% per year in interest. How much will you have in your savings at the end of forty years?
Answer by Fombitz(32388) (Show Source): You can put this solution on YOUR website!
This is a future value of an oridinary annuity problem.
The formula is

where
FV is the future value (what you're looking for)
PMT is the payment made during the period ($250)
n is the total number of periods (40 years)
i is the period interest rate (6% per year)

The future value would be $38690.49.
RELATED QUESTIONS
You invest $250 in your savings account at the end of each year and earn an average of 6% (answered by mukhopadhyay)

"If you deposit $100 in a savings account, and earn 4% interest this year, how much money (answered by stanbon)

You plan to invest $600 in your savings account this year and then you intend to increase (answered by Theo)

A teenager has $10,000 invested in a checking account paying 2.5% per year and a savings (answered by math_helper)

If you put $4,000 in a savings account that pays interest at the rate of 6 percent,... (answered by ikleyn)

Last year, Josh had $20,000 to invest. He invest some of it in an account that paid 7%... (answered by jorel555)

martha has $6000 to invest. she puts x dollars of this money into a savings account that... (answered by mangopeeler07)

Last year, Ivanna had $10,000 to invest. She invested some of it in an account that paid... (answered by josgarithmetic)

Last year, Dan had $10,000 to invest. He invested some of it in an account that paid 5%... (answered by josgarithmetic,greenestamps)