Your grandmother has been putting $5,000 into a savings account on every birthday since your first (that is, when you turned 1). The account pays an interest rate of 8%. How much money will be in the account on your 18th birthday immediately after your grandmother makes the deposit on that birthday?

Final Value = $187,251.22

Explanation:

Giving the following information:

Your grandmother has been putting $5,000 into a savings account on every birthday since your first (that is, when you turned 1). The account pays an interest rate of 8%.

FV = {A*[ (1+i) ^n-1]}/i

A = annual deposit

FV = {5,000[ (1.08^18) - 1]}/0.08 = $187,251.22