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19 April, 17:54

If you deposit $5,400 at the end of each of the next 25 years into an account paying 10.3 percent interest, how much money will you have in the account in 25 years

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  1. 19 April, 20:01
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    A=annual Amount = 5400

    i=annual interest = 0.103 [ compounded annually]

    n=number of periods [year] = 25

    Future value

    F=5400 ((1.103^25-1) / (0.103)

    =555629.89

    Answer: Future amount in account is $555629.89
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