What will your account be worth in 35 years if you invest $5,000 each year, beginning one year from today, into an account that pays 15% per year?

To calculate the future value of your investment over 35 years, we use the **future value of an ordinary annuity** formula because you're investing a fixed amount ($5,000) each year, and the account pays a fixed interest rate of 15%. The formula is:

\[
FV = P \times \frac{(1 + r)^n - 1}{r}
\]

Where:
- $FV$ is the future value of the annuity (the value of your account in 35 years),
- $P$ is the annual payment (in this case, $5,000),
- $r$ is the annual interest rate (15% or 0.15),
- $n$ is the number of periods (35 years).

Substituting the values:

\[
FV = 5000 \times \frac{(1 + 0.15)^{35} - 1}{0.15}
\]

Let me calculate that for you.The future value of your account after 35 years, with annual investments of $5,000 at an interest rate of 15%, will be approximately **$4,405,850.78**.

Do you need further details or have any questions?

Here are five related questions for further exploration:
1. How would the result change if the interest rate were 10% instead of 15%?
2. What is the effect of increasing the investment period from 35 to 40 years?
3. How much would your account be worth if you invested $10,000 annually instead of $5,000?
4. What is the difference between investing at the beginning vs. the end of each year?
5. How can you calculate the total amount invested over 35 years compared to the interest earned?

**Tip:** Higher interest rates have a compounding effect, meaning the earlier you start investing, the greater the impact over time!

Calculate the future value of investing $5,000 annually for 35 years at a 15% interest rate using the future value of annuity formula. Learn how compound interest affects long-term savings, with a final amount of approximately $4,405,850.78.

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