SOLUTION: If $55 is put in an account that gets 6% and I add $20 at the end of each year, how much will I have at the end of 10 years?

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Question 1141450: If $55 is put in an account that gets 6% and I add $20 at the end of each year, how much will I have at the end of 10 years?
Answer by greenestamps(13209) About Me  (Show Source):
You can put this solution on YOUR website!


Treat the original $55 as a lump sum left for 10 years; treat the $20 added at the end of each year as an annuity.

(1) $55 at 6% for 10 years: 55%281.06%5E10%29

(2) $20 at the end of each year for 10 years at 6%: 20%28%281.06%5E10-1%29%2F.06%29

Use a calculator and add the two amounts....