You deposit $1000 each year into an account earning 6% interest compounded annually. How much will you have in the account in 30 years?

To determine how much you'll have in the account after 30 years, we use the **Future Value of a Series (Annuity) formula** for compound interest:

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

Where:
- $ FV $ is the future value of the annuity.
- $ P $ is the annual payment ($1000).
- $ r $ is the annual interest rate (6%, or 0.06 as a decimal).
- $ n $ is the number of years (30 years).

Now, let's plug in the values:

\[
FV = 1000 \times \frac{(1 + 0.06)^{30} - 1}{0.06}
\]

I'll calculate the future value for you.

The future value of the account after 30 years will be approximately **$79,058.19**.

Would you like further details on the calculation or clarification on any step? Here are 5 related questions that expand this topic:

1. What is the formula for compound interest without additional deposits?
2. How would the future value change with different interest rates?
3. What if the interest were compounded monthly instead of annually?
4. How can you calculate the total interest earned over 30 years?
5. What is the difference between compound interest and simple interest?

**Tip:** Compounding frequency (annually, monthly, daily) greatly affects the future value in investment accounts. Always check the terms carefully!

Calculate the future value of depositing $1000 annually into an account earning 6% compound interest over 30 years. This solution uses the Future Value of Annuity formula, providing a step-by-step breakdown suitable for high school students studying financial mathematics.

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