SOLUTION: $15000 is deposited every year in an account yeilding 6% interest compounded annually, how much money will have been saved after 10 years?

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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?
Found 2 solutions by rfer, JWG:
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
A=P(1+.06)^10
A=15000(1.790847697)
A=26862.72

Answer by JWG(21) About Me  (Show Source):
You can put this solution on YOUR website!
This is a complicated problem that I had to do across 10 rows in Excel. Answer came out to be 209,574.64.
Problem with the answer before mine is that the compound interest formula was used while only having one initial deposit of $15,000. However, we start with $15,000, compound that 6% for one year, deposit $15,000 more after the first year and then continue the deposits and compounding for a total of 10 years. Obviously it will be more than $150,000 since the return+investment will be greater than the investment. I wish real world investing worked like that. ;)