Elliot Industries invests a portion of its profits each year into a benefit emergency health care account for its employees
For the last five years it has invested year-end amounts of $50,000, $43,000, $26,000, $61,000, and $84,000. If the last deposit ($84,000) was made today and the account earns an average of 7.3% per year, how much money is currently in the account, assuming there have been no withdrawals?
What will be an ideal response?
Answer: FV = Σ(PV × (1 + r)n) = $50,000 × (1.073)4 + $43,000 × (1.073)3 + $26,000 × (1.073)2 + $61,000 × (1.073)1 + $84,000 × (1.073)0 = $298,786.65.
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