..Where:-
Let’s assume an individual wants to calculate the future balance after 5 years. Today being the first deposit; the amount deposited per year is $1,000 and the account with an effective rate of 3% per year. It is important to note that the last cash flow is received one year prior to the end of the 5th year.
According to the formula, the balance after 5 years would be $5468.41.
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