if someone anually adds $1800 to a principle of $1800, and with an APR of 7% compounded anualy, how much will they end up with in 43 years?

Question

I tried the compound interest formula, either i did it wrong or it doesnt work for this problem.

Answer 1

Lee,

       the first investment will be worth 1800*(1.07)⁴³ after 43 years

 

       the second years investment will be worth 1800*(1.07)⁴² after 42 years

    

       the third years investment will be worth 1800*(1.07)⁴¹ and so on

 

       the total is 1800*(∑(1.07)ⁿ the sum goes from 1 to 43 

       

the sum is 265.12085 so the total is 265.12085*1800=477,218

 

Jim