Lifetime Savings Accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $10,000 now and $10,000 each year for the next 20 years, how much will be in the account immediately after the last deposit, provided the account grows by 10% per year?

What will be an ideal response?


F = 10,000(F/A,10%,21)
= 10,000(64.0025)
= $640.025

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What will be an ideal response?

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