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valina [46]
3 years ago
10

Suppose that you make a series of annual deposits into a bank account that pays 12% interest. The initial deposit at the end of

the first year is $1,200. The deposit amounts increase by $600 in each of the next 5 years. How much would you have immediately after the 6th deposit
Business
1 answer:
tamaranim1 [39]3 years ago
4 0

Answer:

$20,314.17

Explanation:

To find the 6th deposit, we use the future value formula for each yearly payment.

PV(1 + i) FV

FV (year 1) = $1200(1 + 0.12)5 = $2114.81

FV (year 2) = $1800(1 + 0.12)4 = $2832.33

FV (year 3) = $2400(1 + 0.12)3 = $3371.83

FV (year 4) = $3000(1 + 0.12)2 = $3763.2

FV (year 5) = $3600(1 + 0.12)1 = $4032

PV (year 6) = $4200

Total amount you will have after the 6th deposit is = $20,314.17

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3 years ago
A manager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect an
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Learn more about industry life cycle: brainly.com/question/28072264

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