Answer:
Future value is $ 6,944.52.
Calculation:
Year 9 of a $2,000 deposit in year 1
This can be calculated using compounding formula given below.
Year 9 value = present value (1+I%)^period
Year 9 value = 2,000 (1+10%)^8
Year 9 value = $ 4,287.18-A
$1,500 deposit at the end of year 3
This can also be calculated using compounding formula given below.
Year 9 value = present value (1+I%)^period
Year 9 value = 1,500 (1+10%)^6
Year 9 value = $ 2,657.34-B
Combined Value = A+B = $ 6,944.52
