If $60 is put in an account that gets 7% per year, and I add $15 at the end of each year, how much will I have at the end of 8 years?
$256.99
To calculate how much you will have at the end of 8 years, we need to apply the 7% interest rate to the initial amount and the yearly additions. Here's how you can calculate it step by step:
1. Calculate the interest on the initial amount:
Multiply the initial amount of $60 by the interest rate of 7%:
$60 * 0.07 = $4.20
2. Add the interest earned to the initial amount:
$60 + $4.20 = $64.20
3. Add the yearly addition of $15 at the end of each year:
After the first year: $64.20 + $15 = $79.20
After the second year: $79.20 + $15 = $94.20
After the third year: $94.20 + $15 = $109.20
After the fourth year: $109.20 + $15 = $124.20
After the fifth year: $124.20 + $15 = $139.20
After the sixth year: $139.20 + $15 = $154.20
After the seventh year: $154.20 + $15 = $169.20
After the eighth year: $169.20 + $15 = $184.20
Therefore, you will have $184.20 at the end of 8 years.
(60*0.7)+75 = $117 (75 because of 60+15)
$117*8=$936 at the end of eight years