A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $110,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years?
Note: Round your final answers to nearest whole dollar amount.

To solve this problem, we use the **Future Value of an Annuity Formula** since the company is making regular annual deposits, and the interest is compounded annually.

The formula for the future value of an annuity is:

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

Where:
- $ FV $ is the future value of the annuity (the amount in the account after the last payment),
- $ P $ is the annual deposit amount,
- $ r $ is the interest rate per period,
- $ n $ is the number of periods.

### Given:
- $ P = 110,000 $ (annual deposit),
- $ r = 7\% = 0.07 $ (annual interest rate),
- $ n = 10 $ (number of years).

Now, let's plug the values into the formula:

\[
FV = 110,000 \times \frac{(1 + 0.07)^{10} - 1}{0.07}
\]

### Step-by-step calculation:
1. Calculate $ (1 + 0.07)^{10} $:

\[
1.07^{10} = 1.967151
\]

2. Subtract 1:

\[
1.967151 - 1 = 0.967151
\]

3. Divide by $ r = 0.07 $:

\[
\frac{0.967151}{0.07} = 13.816441
\]

4. Multiply by the annual deposit $ P = 110,000 $:

\[
110,000 \times 13.816441 = 1,519,808.51
\]

### Final Answer:
The future value of the annuity is approximately **$1,519,809**.

Would you like further details on the calculations or any clarification?

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Here are 5 related questions to expand on this topic:
1. How would the final balance change if the interest rate were 8% instead of 7%?
2. What if the company only made deposits for 5 years instead of 10 years?
3. How does the formula change if the deposits are made at the beginning of each year instead of the end?
4. How much interest did the company earn over the 10 years?
5. What is the present value of this future amount if we discount it at 7% annually?

**Tip:** When dealing with compounded interest problems, remember that small changes in the interest rate can have significant effects on the final value due to exponential growth.

A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $110,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Round your final answers to nearest whole dollar amount.

Learn how to calculate the future value of an annuity with $110,000 annual deposits over 10 years at 7% interest compounded annually. This detailed step-by-step solution covers key finance concepts, including the annuity formula and compound interest. Suitable for advanced high school math or college-level finance students.

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