Ozzie Foster deposits $2,000 at the end of each year (ordinary annuity) into an Individual Retirement Account at Bishop Bank.

Question

Ozzie Foster deposits $2,000 at the end of each year (ordinary annuity) into an Individual Retirement Account at Bishop Bank. The account pays 7% compounded annually. a) How much will be in the account in 25 years? b) If Ozzie had deposited the $2,000 at the beginning of each year (annuity due), how much would be in the account in 25 years?

Kunduz · Accepted Answer

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