Future Value?

Question

An individual deposits $10,000 at the beginning of each of the next 10 years, starting today, into an account paying 9 percent interest compounded annually. The amount of money in the
account at the end of 10 years will be? How is this calculated. Thanks!

Answer 1

The formula is: (( ((1+i)**n )- 1)/ i )) * 10000= $151,929.30

Answer 2

Use a compound interest table and go to Future Value interest Factor of an Annuity(FVIFA). Since it is paid at the begining it is called Annuity due. At the place in the table look for FVIFA for 9% for 10 years. Multiply this number by (1+r) since it is annuity due and multiply this number again by 10000 and you will get the answer. Many of the answers given might be wrong since they haven't taken into consideration the 'Annuity due' aspect of the investment.

Answer 3

Balance(n) = P(1 + r)n + c[((1 + r)n + 1 - (1 + r))/r]

this is the long formula or
((((1+i)**n )- 1)/ i )) * 10000

$151,929.2972 round up to 30 cents.

Answer 4

Total of 10 deposits:

Deposit # FV in 10 years
1 $10K x (1.09)^9 = $21,719
2 $10K x (1.09)^8 = $19,926
3 $10K x (1.09)^7 = $18,280
4 $10K x (1.09)^6 = $16,771
5 $10K x (1.09)^5 = $15,386
6 $10K x (1.09)^4 = $14,116
7 $10K x (1.09)^3 = $12,950
8 $10K x (1.09)^2 = $11,881
9 $10K x (1.09)^1 = $10,900
10 $10K x (1.09)^0 = $10,000

Total deposits = $100,000
Total ending balance = $151,929

Answer 5

This sounds like a homework question.

Seriously, I don't know how to calculate this on a pice of paper, but there a computer programs that will do it for you.

Answer 6

much easier to just use a financial calculator

payments -10000
periods 10
interest 9%

151929.2972

heh,i love that thing, i need to practice more with the formulas though maybe

Answer 7

hold on wait i know this.

lemme just get a paper.

ok you mulitply the money by the years so you end up with $100,000.

9% of $10,000 is..... ??? im not sure. but when you figure it out you mulitply ??? by 10 and added it to $100,000

thats how i learned it.