Investment Value Calculation with Exciting Interest Rate!

Curious about the outcome of your investment with an interest rate of 4.9%?

What will your investment be worth after receiving the final payment of £4500 on the 21st year?

The investment will be worth approximately £91,836.73 after the final payment of £4500 on the 21st year.

Have you ever wondered how much your investment will grow with a promising interest rate of 4.9%? Let's find out together! Each year, the bank product promises to pay you £4500. With an interest rate of 4.9%, your investment will accumulate to approximately £91,836.73 after the final payment of £4500 arrives on the 21st year.

To calculate the worth of the investment after the final payment, we need to use the formula for the future value of an annuity. In this case, the annual payment is £4500, and the interest rate is 4.9%. The investment will continue to earn interest until the 21st year, which is when the final payment arrives.

Using the formula, the future value (FV) can be calculated as follows:

FV = Payment × [(1 + Interest rate)^Number of periods - 1] / Interest rate

Plugging in the values, we have:

FV = £4500 × [(1 + 0.049)^21 - 1] / 0.049

Simplifying the equation, we get:

FV = £4500 × [1.049^21 - 1] / 0.049

By evaluating the expression, the investment will be worth approximately £91,836.73 after the final payment of £4500 arrives on the 21st year. Therefore, your investment will accumulate to around £91,836.73 by the 21st year, bringing you exciting returns!