Question

U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 will be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually?

Answer 1

Answer:

Total= $13,221.52

Explanation:

Giving the following information:

Deposited $3,200 in an account two years ago and is depositing another $5,000 today.

A final deposit of $3,500 will be made one year from now.

Interest expense= 4.85% compounded annually.

We need to calculate the final value of each deposit using the following formula:

FV= PV*(1+i)^n

First deposit= 3,200*(1.0485^5)= $4,055.01

Second deposit= 5,000*(1.0485^2)= $5,496.76

Third deposit= 3,500*(1.0485)= $3,669.75

Total= $13,221.52