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.

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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