document.write( "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? \n" ); document.write( "

Algebra.Com's Answer #89168 by Fombitz(32388) $\"\"$ $\"About$

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This is a future value of an oridinary annuity problem.
\n" ); document.write( "The formula is
\n" ); document.write( " $\"FV=PMT%28%28%281%2Bi%29%5En-1%29%2Fi%29\"$
\n" ); document.write( "where
\n" ); document.write( "FV is the future value (what you're looking for)
\n" ); document.write( "PMT is the payment made during the period ($250)
\n" ); document.write( "n is the total number of periods (40 years)
\n" ); document.write( "i is the period interest rate (6% per year)
\n" ); document.write( " $\"FV=PMT%28%28%281%2Bi%29%5En-1%29%2Fi%29\"$
\n" ); document.write( " $\"FV=250%28%28%281%2B.06%29%5E40-1%29%2F.06%29\"$
\n" ); document.write( " $\"FV=250%28%28%281.06%29%5E40-1%29%2F.06%29\"$
\n" ); document.write( " $\"FV=250%28%2810.2857-1%29%2F.06%29\"$
\n" ); document.write( " $\"FV=250%289.2857%2F.06%29\"$
\n" ); document.write( " $\"FV=250%28154.762%29\"$
\n" ); document.write( " $\"FV=38690.49%29\"$
\n" ); document.write( "The future value would be $38690.49. \n" ); document.write( "

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