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How much money was deposited each year for 10 years if the account is now worth $500,000 and the...

Question:

How much money was deposited each year for 10 years if the account is now worth $500,000 and the last deposit was made 8 years ago? Assume the account earned interest at 8% per year. just answer please

Answer and Explanation:

The answer to the question is $17,266.00.

Proof:

Formula used first ten years: (deposit + previous balance) x (1+ interest rate) = ending balance.

Formula used last eight years: previous balance x (1 + interest rate) = ending balance.

year

1 ($17,266.00 + $0.00) x 8.00% = $18,647.28

2 ($17,266.00 + $18,647.28) x 8.00% = $38,786.34

3 ($17,266.00 + $38,786.34) x 8.00% = $60,536.53

4 ($17,266.00 + $60,536.53) x 8.00% = $84,026.73

5 ($17,266.00 + $84,026.73) x 8.00% = $109,396.15

6 ($17,266.00 + $109,396.15) x 8.00% = $136,795.12

7 ($17,266.00 + $136,795.12) x 8.00% = $166,386.01

8 ($17,266.00 + $166,386.01) x 8.00% = $198,344.17

9 ($17,266.00 + $198,344.17) x 8.00% = $232,858.99

10 ($17,266.00 + $232,858.99) x 8.00% = $270,134.99

11 $270,134.99 x 8.00% = $291,745.79

12 $291,745.79 x 8.00% = $315,085.45

13 $315,085.45 x 8.00% = $340,292.28

14 $340,292.28 x 8.00% = $367,515.67

15 $367,515.67 x 8.00% = $396,916.92

16 $396,916.92 x 8.00% = $428,670.27

17 $428,670.27 x 8.00% = $462,963.90

18 $462,963.90 x 8.00% = $500,001.01


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