document.write( "Question 1205192: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)
\n" ); document.write( "$200 is deposited monthly for 10 years at 3% per year in an account containing $7,000 at the start
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Algebra.Com's Answer #841835 by ikleyn(52790) $\"\"$ $\"About$

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\n" ); document.write( "Find the amount accumulated FV in the given annuity account.
\n" ); document.write( "(Assume end-of-period deposits and compounding at the same intervals as deposits.
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\n" ); document.write( "$200 is deposited monthly for 10 years at 3% per year in an account containing $7,000 at the start
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document.write( "It works as if you have two separate accounts:\r\n" );
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document.write( "    (a) one account is the principal $7000 deposited once for 10 years at 3% per year compounded monthly;\r\n" );
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document.write( "    (b) and the other, which is an Ordinary Annuity plan with $200 deposits at the end of each month \r\n" );
document.write( "        at 3% per year compounded monthly.\r\n" );
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document.write( "For the first account, the future value after 10 years is\r\n" );
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document.write( "        FV1 =  = 9445.47  dollars  (rounded).\r\n" );
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document.write( "For the second account, the future value after 10 years is\r\n" );
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document.write( "        FV2 =  = 27948.28  dollars  (rounded).\r\n" );
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document.write( "Now, the future value of the original account in 10 years is the sum of these two amounts \r\n" );
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document.write( "        FV = FV1 + FV2 = 9445.47 + 27948.28  = 37393.76 dollars.   \r\n" );
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document.write( "ANSWER.  Future value in 10 years is 37393.76 dollars.\r\n" );
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\n" ); document.write( "\n" ); document.write( "To see other similar solved problems at this site, look into the lesson\r
\n" ); document.write( "\n" ); document.write( " - Ordinary annuity account with non-zero initial deposit as a combined total of two accounts \r
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