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choli [55]
3 years ago
6

You want to buy a new sports car 3 years from now, and you plan to save $4,200 per year, beginning one year from today. you will

deposit your savings in an account that pays 5.2% interest. how much will you have just after you make the 3rd deposit, 3 years from now?
Mathematics
1 answer:
vfiekz [6]3 years ago
4 0
The formula of the future value of an annuity ordinary is
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value?
PMT payment per year 4200
R interest rate 0.052
N time 3 years

Fv=4,200×(((1+0.052)^(3)−1)÷(0.052))
Fv=13,266.56
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