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# If \$10,000 is invested each year for four years at an annual

If \$10,000 is invested each year for four years at an annual rate of return of X%, how much will be in the account at the end of the fourth year?
Hello and welcome.

If you invest the 10,000 at the start of the year:

((((1+(X/100))^4-1)/(X/100))*10000))*(1+X/100)
4 being the period 10000 being the amount

So if you use 10%, \$51051

for 10% (meaning 0.10):

((1+0.1)^4-1) /(0.1)*10000*(1+0.1)

so to generalize for X in %, it give :

((1+(X/100))^4-1) /((X/100))*10000*(1+(X/100))
Customer: replied 4 years ago.
So is the answer still \$51051
Yes for my 10% exemple.

Let me break it down in step for you:

1-
10000*1.10= 11000 at the end of the first year
2-
(11000 +10000) *1.10 = 23100 end of year 2
3-
(23100 + 10000) *1.10 = 36410 end of year 3
4-
(36410 + 10000) *1.10 = 51051 end of year 4