document.write( "Question 228010: $15000 is deposited every year in an account yeilding 6% interest compounded annually, how much money will have been saved after 10 years? \n" ); document.write( "
Algebra.Com's Answer #854320 by ikleyn(53846)\"\" \"About 
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\n" ); document.write( "$15000 is deposited every year in an account yeilding 6% interest compounded annually,
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\n" ); document.write( "\n" ); document.write( "        This my post is written as a reaction to two previous posts by @rfer and @JWG,\r
\n" ); document.write( "\n" ); document.write( "        that do not solve the problem or solve it incorrectly.\r
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\n" ); document.write( "\n" ); document.write( "        This problem is a standard typical problem on ordinary annuity,  of the beginner level.\r
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document.write( "Use the standard formula for the Future value of the ordinary annuity\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\n" );
document.write( "r is the annual compounding 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 = 15000;  r = 0.06;  n = 10.  So, according to the formula (1), \r\n" );
document.write( "you get at the end of the 10-th year\r\n" );
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document.write( "    FV = \"15000%2A%28%28%281%2B0.06%29%5E10-1%29%2F0.06%29\" = $197,711.92.    ANSWER\r\n" );
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document.write( "Note that you deposit only  10*$15000 = $150,000.  The rest is what the account earns/accumulates in 10 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "Solved completely.\r
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