Christy Reed has been depositing $2,000 in her savings account every December since 2001. Her account earns 7 percent compounded annually. How much will she have in December 2012? (Assume that a deposit is made in December of 2012. What is the Future Value?

Future Value is $35776.902

Explanation:

Given data

saving = $2000

rate = 7 % = 0.07

time = 12 year

to find out

Future Value?

solution

we will apply here future value formula that is

Future Value = saving * (1 + rate) ^time - 1 / rate

put all value here and we get

Future Value = 2000 * (1 + 0.07) ^12 - 1 / 0.07

Future Value = 2000 * 17.888451

Future Value is $35776.902