Back account opened in 1912 with a $2000 deposit at the beginning of the year, a further $500 is deposited at the beginning of each subsequent year, interest rate is 2.5 percent and it is paid at the end of each year, find the total amount at the end of year 1930 I got an answer of 14300 but I think I went wrong somewhere Solution it will be done by compound interest formulae amount =2000(1+0.025)^19+5000(1+0.025)^18+5000(1+0.025)^17+5000(1+0.025)^16.......+5000(1.025 ) amount=3197.3+5000(12.7426+10.0234) amount=3197.3+5000(22.94598)=117927.21.

1. Back account opened in 1912 with a $2000 deposit at the beginning of the year, a further $500 is
deposited at the beginning of each subsequent year, interest rate is 2.5 percent and it is paid at the
end of each year, find the total amount at the end of year 1930
I got an answer of 14300 but I think I went wrong somewhere
Solution
it will be done by compound interest formulae
amount
=2000(1+0.025)^19+5000(1+0.025)^18+5000(1+0.025)^17+5000(1+0.025)^16.......+5000(1.025
)
amount=3197.3+5000(12.7426+10.0234)
amount=3197.3+5000(22.94598)=117927.21