document.write( "Question 1181738: You Deposit $5000 each year into an account earning 6% interest compounded annually. How much will you have in the account in 30 years? \n" ); document.write( "
Algebra.Com's Answer #811644 by ikleyn(52803)\"\" \"About 
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\n" ); document.write( "You Deposit $5000 each year into an account earning 6% interest compounded annually.
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is the annual payment (deposit); r is the annual percentage rate presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years, in this case).\r\n" );
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document.write( "Under the given conditions, P = 5000;  r = 0.06;  n = 30.  So, according to the formula (1), you get at the end of the 30-th year\r\n" );
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document.write( "    FV = \"5000%2A%28%28%281%2B0.06%29%5E30-1%29%2F0.06%29\" = $395,290.93  dollars.\r\n" );
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document.write( "Note that you deposit only  30*$5000 = $150,000.  The rest is the interesrt what the account earns/accumulates in 30 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Solved problems on Ordinary Annuity saving plans\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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