Finance problem: Amount in bank
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Let's say you are interested in saving money for a possible investment. Your plan is to make regular deposits into an account which will earn 14 percent. Your first deposit of $5,000 will be at the beginning of next year. You also plan to make four additional deposits at the beginning of each of the next four years. Your plan is to increase your deposits by 10 percent a year. (In other words, to deposit $5,500 at t+1, and $6,050 at t+2, etc.)
How much money will be in your account after five years?
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Solution Summary
The problem deals with a constant problem encountered in both personal and corporate decision-making: how much will be in an account after a certain period.
Education
- B. Sc., University of Nigeria
- M. Sc., London South Bank University
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