If $85 is put into an account that gets 8.5% and I add $15.00 per year, how much will I have in 8 years

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02-04-2018
Mathematics

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If $85 is put into an account that gets 8.5% and I add $15.00 per year, how much will I have in 8 years

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CastleRook CastleRook · Answer 1 · 2018-04-11T10:55:49+02:00

CastleRook CastleRook

11-04-2018

Using geometric progression formula
sn=[a(r^n-1)/(r-1)]
s8=[15(1.085^8-1)/(0.085)]
The total amount will be given by:
85(1.085)^8+[15(1.085^8-1)]/0.085
=325.7109
After 8 years we shall have 325.71

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