If you invest $600 a year for the next 10 years, how much will your investment b

Question

If you invest $600 a year for the next 10 years, how much will your investment be worth at the end of 10 years if your opportunity cost is 10%? The first $600 investment is made at the end of the year. If you invest $600 a year for the next 10 years, how much will your investment be worth at the end of 10 years if your opportunity cost is 10%? The first $600 investment is made at the end of the year. If you invest $600 a year for the next 10 years, how much will your investment be worth at the end of 10 years if your opportunity cost is 10%? The first $600 investment is made at the end of the year.

Explanation / Answer

how much will your investment be worth at the end of 10 years

=600*(1+10%)^9+600*(1+10%)^8+600*(1+10%)^7+600*(1+10%)^6+600*(1+10%)^5+600*(1+10%)^4+600*(1+10%)^3+600*(1+10%)^2+600*(1+10%)^1+600*(1+10%)^0

=9562.45

the above is the answer

second method

FV=600*((1+10%)^10-1)/10%=9562.45

the above is the answer

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