Withdrawals 62324

A person deposits 5,000 euros into a bank account at the beginning of each year for 10 years. He does not make any other deposits or withdrawals from the account. Determine the total amount saved at 8% compounded annually when interest is compounded annually.

Correct answer:

a10 =  78227.44 eur

Step-by-step explanation:

a0=5000 q=100%+8%=1+1008=1.08  a1=a0 q=5000 1.08=5400 a2=(a1+a0) q=(5400+5000) 1.08=11232 a3=(a2+a0) q=(11232+5000) 1.08=17530.56 a4=(a3+a0) q=(17530.56+5000) 1.08=24333.0048 a5=(a4+a0) q=(24333.0048+5000) 1.0831679.6452 a6=(a5+a0) q=(31679.6452+5000) 1.0839614.0168 a7=(a6+a0) q=(39614.0168+5000) 1.0848183.1381 a8=(a7+a0) q=(48183.1381+5000) 1.0857437.7892 a9=(a8+a0) q=(57437.7892+5000) 1.0867432.8123 a10=(a9+a0) q=(67432.8123+5000) 1.08=78227.44 eur



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