SOLUTION: A high-interest savings account pays 5.5% interest compounded annually. If $300 is deposited initially and again at the first of each year, which summation represents the money in

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Question 935745: A high-interest savings account pays 5.5% interest compounded annually. If $300 is deposited initially and again at the first of each year, which summation represents the money in the account 10 years after the initial deposit?
Answer by ptfile(81) About Me  (Show Source):
You can put this solution on YOUR website!
Let A = Periodic amount
    R = Interest rate
    T = Duration of Payment
   FV = Future Value

FV+=+A%28%28%281%2Br%29%5Et-1%29%2Fr%29%281%2Br%29
FV+=+300%28%28%281%2B.055%29%5E10-1%29%2F.055%29%281%2B.055%29
FV+=+300%28%28%281.055%29%5E10-1%29%2F.055%29%281.055%29
FV+=+300%28%28%281.708144458%29-1%29%2F.055%29%281.055%29
FV+=+300%28.708144458%2F.055%29%281.055%29
FV+=+300%2812.875353782%29%281.055%29
FV+=+4075.05
The owner's account would have a balance of $4075.05 in 10 years.