Question 1135580
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You deposit $3000 at the beginning of each year into an account earning 6% interest compounded annually. 
How much will you have in the account in 15 years?
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<pre>
It is a classic Annuity Due saving plan. The general formula is 


    FV = {{{P*(1+r)*(((1+r)^n-1)/r)}}},    (1)


where  FV is the future value of the account;  P is your annual payment (deposit); r is the annual percentage rate presented as a decimal; 
n is the number of deposits (= the number of years, in this case).


Under the given conditions, P = 3000;  r = 0.06;  n = 15.  So, according to the formula (1), you get at the end of the 15-th year


    FV = {{{3000*(1+0.06)*(((1+0.06)^15-1)/0.06)}}} = $74017.58.    <U>ANSWER</U>
</pre>

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On Annuity Due saving plans, &nbsp;see the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Annuity-due-saving-plans-and-geometric-progressions.lesson>Annuity Due saving plans and geometric progressions</A>

in this site.


The lesson contain &nbsp;EVERYTHING &nbsp;you need to know about this subject, &nbsp;in clear and compact form.


When you learn from this lesson, &nbsp;you will be able to do similar calculations in semi-automatic mode.