Question 15 Suppose an account pays 6% interest that is compounded annually. At the beginning of each year, $2,000 is deposited into the account (starting with $2,000 for the first year). What is the value of the account after the tenth deposit if no withdrawals or additional deposits are made? $21,200.00 $26,361.59 $23,581.70 $35,816.95
Added by Matthew S.
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For the first deposit of $52,000, it will be in the account for 10 years. So, the value of this deposit after 10 years will be $52,000 * (1 + 0.06)^10 = $92,710.42. For the second deposit, it will be in the account for 9 years. So, the value of this deposit Show more…
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