## 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

#### Learn more about this topic: Discounted Cash Flow, Net Present Value & Time Value of Money

from Accounting 102: Intro to Managerial Accounting

Chapter 8 / Lesson 4
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