Five annual deposits in the amounts of $10,000, $8,000, $6,000, $4,000, and $2,000, in that order, are made into a fund that pays interest at a rate of 8% compounded annually. determine the amount in the fund immediately after the fifth deposit.

Balance of fund just at the end of fifth year = $35,000.9856 + $2,000

= $37,000.9856

When rounded to nearest dollar amount = $37,001

Explanation:

Provided, amounts are deposited annually,

Amount deposited assumed in the beginning of each year.

Thus, at the end of year 1 = $10,000 + 8% = $10,800

Amount deposited in second year = $8,000

Amount in the fund at end of second year = ($10,800 + $8,000) + 8% = $20,304

Amount added in third year = $6,000

Balance of fund at end of third year = ($20,304 + $6,000) + 8% = $28,408.32

Amount added in the 4th year = $4,000

Balance of fund at end of fourth year = ($28,408.32 + $4,000) + 8% = $35,000.9856

Amount  added in fifth year = $2,000

Balance of fund just at the end of fifth year = $35,000.9856 + $2,000

= $37,000.9856

When rounded to nearest dollar amount = $37,001

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