Future value of initial deposit and annuity payment

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Reference no: EM131562485

Christy Reed made a $2,000 deposit in her savings account on her 21st birthday, and she has made another $2,000 deposit on every birthday since then.

Her account earns 7 percent compounded annually. How much will she have in the account after she makes the deposit on her 32nd birthday?

Some said the answer is future value of initial deposit + future value of annuity payment, but some said only future value of annuity payment is enough. Which one?

Reference no: EM131562485

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