Question 228010
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$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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        This my post is written as a reaction to two previous posts by @rfer and @JWG,

        that do not solve the problem or solve it incorrectly.


        This problem is a standard typical problem on ordinary annuity,  of the beginner level.



<pre>
Use the standard formula for the Future value of the ordinary annuity


    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 compounding percentage rate presented as a decimal; 
n is the number of deposits (= the number of years, in this case).


Under the given conditions, P = 15000;  r = 0.06;  n = 10.  So, according to the formula (1), 
you get at the end of the 10-th year


    FV = {{{15000*(((1+0.06)^10-1)/0.06)}}} = $197,711.92.    <U>ANSWER</U>


Note that you deposit only  10*$15000 = $150,000.  The rest is what the account earns/accumulates in 10 years.
</pre>

Solved completely.