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Hatshy [7]
3 years ago
5

You want to buy new kitchen appliances 2 years from now, and you plan to save $8,200 per year, beginning one year from today. yo

u will deposit your savings in an account that pays 6.2% interest. how much will you have just after you make the 2nd deposit, 2 years from now?
Mathematics
1 answer:
bulgar [2K]3 years ago
4 0
Even though the money is required 2 years from now, the first deposit is made only a year from now, therefore in the bank for only one year.
The second deposit will be in the bank the same day it will be taken out, so no interest whatsoever.

Thus future value 
= 8200(1.062)+8200
=$16908.40
will be available assuming compounding annually.
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Thanks for free

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