The deposits start at 5000 and increase by 1000 each year


A. Deposits are made at the end of years 1 to 7 into an account paying 8.9%/year compounded annually. The deposits start at 5000 and increase by $1000 each year. How much will be in the account after the last deposit?

B. Sally Saverite deposits $8727 in an account on her 26th birthday. Each year after that she deposits $1950 more. Using a gradient series factor determine how much will be in the account imediatly after the 35th deposit is made if:

i. the account earned 3%/year compounded annually.

ii. the account earned 12%/year compounded annually.

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Financial Management: The deposits start at 5000 and increase by 1000 each year
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