Question 1181738
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You Deposit $5000 each year into an account earning 6% interest compounded annually. 
How much will you have in the account in 30 years?
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<pre>
It is a classic Ordinary Annuity saving plan. The general formula is 


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


where  FV is the future value of the account;  P is the 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 = 5000;  r = 0.06;  n = 30.  So, according to the formula (1), you get at the end of the 30-th year


    FV = {{{5000*(((1+0.06)^30-1)/0.06)}}} = $395,290.93  dollars.


Note that you deposit only  30*$5000 = $150,000.  The rest is the interesrt what the account earns/accumulates in 30 years.
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On Ordinary Annuity saving plans, &nbsp;see the lessons

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

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A>

in this site.


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