Tony plans to deposit $1,000 at the end of each of the next three years. Therefore, he will have $3,152.50 at the end of three years.
A deposit is a cash you placed into your bank account. You have to deposit money in a bank to create savings and earn a hobby on it. A call for deposit is made for finances you can withdraw each time. A time deposit is an extended-time period investment. A deposit could also be the collateral amount you pay while you are taking on a mortgage.
An example of a deposit is the cash brought to a financial savings account. An instance of the deposit is the gold left within the backside gravel of the flow. A deposit is defined as to region, entrust, put, lay, or set down for safekeeping or price. An example of a deposit is someone putting money in their bank account.
A deposit is a time period used to denote the cash saved or held in any bank account, in particular, to build up a hobby. Deposit additionally refers to a sum of money used as a safety for the delivery of merchandise or utilizing services. call for and time are the two kinds of deposits made via agencies or people.
Annual deposit= $1,000
Time= 3 years
Interest rate= 5%
The question is solved by computing the future value.
Enter the below in a financial calculator to compute the future value:
PMT= 1,000
N= 3
I/Y= 5
Press the CPT key and FV to compute the future value.
The value obtained is 3,152.50.
Therefore, he will have $3,152.50 at the end of three years.
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