At the end of each year, a worker invests $2,000 into an account the draws 4% in

Question

At the end of each year, a worker invests $2,000 into an account the draws 4% interest. The worker makes every payment for the next 30 years except for the payment at the end of year 10. That is, no money is invested at the end of year 10. How much money will be in the account at the end of the 30 years?

I have used an online calculator to find that the answer is 107,787.62 and am fairly certain this is correct. I now just need the work associated with the problem because I don't know how to do it without the calculator.

Thanks~

Explanation / Answer

Present value of all the investments including 10th year= 2000/1.04 + 2000/1.04^2 + 2000/1.04^3 + 2000/1.04^4.......2000/1.04^30 =$34,584.07

Present value of investment in 10th year = 2000/1.04^10 =$1351.19

Present value of savings of the worker = 34,584.07-1351.19 =$33,232.94

Future value of savings at the end of 30 years = 33,232.94*1.04^30=

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