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Future Value of Scheduled Deposits

Going to pay $100 into an account at the beginning of each of the next 40 years. At the beginning of the 41st year, you buy a 30-year annuity whose first payment comes at the end of the 41st year (the account pays 12%)How much money will be in the account at the end of year 40 (round to the nearest $1,000)?
a. $77,000
b. $86,000
c. $69,000
d. $93,000

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We have to find the future value of annuity due (since the payment is made at the ...

Solution Summary

The solution explains how to calculate the amount of money in the account at the end of 40 years