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Word Problems/Investment Account Value

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Question
Hello:

An investor invests $33,000 at 5% compounded annually for 10 years. He also deposits $2,165 every year in the account for ten years.  How much will he have at the end of 10 years?

I thank you for your reply.

Answer
The answer is found by taking $33,000 * 1.05^10  +  2,165(1.05^10 - 1)/0.05.
At the end of 10 years this is $53,753.52 + $27,231.14.
The answer to that is $80,984.66.

To get this, I used the formula for a future value F given an annuity A, n periods,
and i interest.  It is F = A*((1+i)^n - 1)/i).

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Scott A Wilson

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