Gabby starts to save at age 20 for an extended vacation around the world that she will take on her 40th birthday. She will contribute $250 four times each year to the account, which earns 1.55% annual interest, compounded annually. What is the future value of this investment when she takes her trip?

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I've used the future value formula, found the yrs to be 20, but ponder whether the present value is 1000 from (250*4) or if that is calculated into the 20yrs previous to the power enhancement? Please help. Thankx :3

I shouldn't do this, I should show you how to do it but I'm heading off so $23,394.10. I've added the amounts at the end of the compounding period, ie start with 0. As I'm in a hurry best get someone to check this.

Sure thing. \[\sum_{n=1}^{20}1000(1.0155)^{n}\] If you plug this in to the excel, you should see the amount below.

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