Question

Milo decides to invest $1,500 in a savings account every year at the beginning of the year for 10 years. Assuming an interest rate of 7%, how much will Milo have at the end of the 10th year

Answer 1

Answer:

$22,175.40

Explanation:

For this question, we use the Future value formula that is shown on the attachment below:

Provided that,  

Present value = $0

Rate of interest = 7%

NPER = 10 years

PMT = $1,500

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $22,175.40

Therefore, the amount at the end of the year is $22,175.40