If $85 is put into an account that gets 8.5% and I add $15.00 per year, how much will I have in 8 years

Question

Mathematics

Kaylee

27 May, 23:14

If $85 is put into an account that gets 8.5% and I add $15.00 per year, how much will I have in 8 years

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Answers (1)

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Carina · Answer 1

Using geometric progression formula

sn=[a (r^n-1) / (r-1) ]

s8=[15 (1.085^8-1) / (0.085) ]

The total amount will be given by:

85 (1.085) ^8+[15 (1.085^8-1) ]/0.085

=325.7109

After 8 years we shall have 325.71