Question

suppose you make an annual contribution of $5000 to your savings account at the end of each year for five years if your savings account earn 6% interest annualy how much can be withdrawn at the end of five years?

Answer 1

$5000\times1.06 = 5300$ , 1-year

$(5300+5000)\times1.06=10918$, 2-year

$(10918+5000)\times1.06 = 16873,08$, 3-year

$(16873.08+5000)\times1.06 = 23185,46$, 4-year

23185.4648+5000=28185,46

28185.46

no interest is charged in the last year, deducted from the account