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Connie made deposits of $2,000 at the beginning of each year for four years. the rate she earned is 5% annually. what is the value of connie's account in four years?

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  1. 22 April, 18:23
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    To get the value of Connie's deposits we use the future value of annuity:

    FV=P[ ((1+r) ^n-1) / r]

    where:

    P=periodic deposits

    r=rate

    n=time

    thus plugging our values in the formula we get:

    FV=2000[ ((1+0.05) ^4-1) / 0.05]

    FV=$8620.25

    Answer: $8620.25
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