SOLUTION: As part of your retirement plan, you have decided to depostit 3000.00 at the beginning of each year into an account paying 5% interest compounded annually. How much would the acco

Question 430358: As part of your retirement plan, you have decided to depostit 3000.00 at the beginning of each year into an account paying 5% interest compounded annually.
How much would the account be worth after 10 years?
How much would the account be worth after 20 years?
When you retire in 30 years, what will be the total worth of the account?
If you found a bank that paid 6% inrerest counpunded annually, rather than 5%, how much more would you have in the account after 30years?
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
FV=P((1+i)^n-1)/i
FV=3000((1.05)^10-1)/0.05
FV=3000((1.62889)-1)/0.05
FV=3000*.62889/0.05
FV=$37,733.40
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