Time Value Of Money - Present Value of Growing Annuity

Hi, Could You

Apply This Formula:

Present Value of Growing Annuity = Cashflow / Interest Rate Growth Rate [ 1-(1+Growth Rate /1+ Interest Rate)^Time)

To Solve This Question

Question 1

Karry and Jill are saving money in the next 4 years for a deposit to buy their flat. They plan to put money in their bank account at the beginning of each year, starting at $20,000 with the amount growing at 10% each year.

If the bank pays an interest rate of 3% per annum, what would they have accumulated at the end of four years?