Question #51277

If you put RM200 in a savings account at the beginning of each year for 10 years and

then allow the account to compound for an additional 10 years, how much will be in

the account at the end of the 20th year? Assume that the account earns 10% and

round to the nearest RM100.

then allow the account to compound for an additional 10 years, how much will be in

the account at the end of the 20th year? Assume that the account earns 10% and

round to the nearest RM100.

Expert's answer

P = 200 for 10 years and then allow the account to compound for an additional 10 years, r = 10%.

FV = 200*(1.1+1.1^2+1.1^3+1.1^4+1.1^5+1.1^6+1.1^7+1.1^8+1.1^9+1.1^10)*1.1^10 = 9094.27 will be on account at the end of 20 years.

FV = 200*(1.1+1.1^2+1.1^3+1.1^4+1.1^5+1.1^6+1.1^7+1.1^8+1.1^9+1.1^10)*1.1^10 = 9094.27 will be on account at the end of 20 years.

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