Chris plans on saving $4,000 a year at 4 percent interest for five years. Which one of these is the correct formula for computing the future value at Year 5 of these savings

FV = $21,665.29

Explanation:

Giving the following information:

Chris plans on saving $4,000 a year at 4 percent interest for five years.

To calculate the future value, you need to use the following formula:

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

A = annual deposit

FV = {4,000*[ (1.04^5) - 1]} / 0.04

FV = $21,665.29