Question

You decide to begin saving towards the purchase of a new car in 5 years. If you put $1,000 at the end of each of the next 5 years in a savings account paying 6% compounded annually, how much will you accumulate after 5 years?

Answer 1

$1000*(1.06^5+1.06^4+1.06^3+1.06^2+1.06)=5,975.32$