show computation of the following?

Question

assume you are to receive a 20-year annuity with annual payments of %50. The first payment willl be received at the end of Year 1, and the last payment will be received at the end of Year 20. You will invest each payment in an account that pays 10%. What will be the value in your account at the endo of Year 30?

Answer 1

Well you've got: 20 payments of $50 and then 10 years of just earning interest:

Mathematically the 20 payments has a future value of:
$50* ((1+10%)^20 - 1) / 10% = 2863.74997......

Then you compound that for 10 years:
2863.74997 * (1+10%)^10 = $7427.8299 approx. $7,427.83