Answer:
Final value= $15,101.13
Explanation:
Giving the following information:
You believe that you will be able to invest $3,000, $3,300, $3,800, and $4,000 next four years. The interest rate is 5%.
To calculate the final value of each deposit we need to use the following formula:
FV= PV*(1+i)^n
Year 1= 3,000*1.05^3= $3,472.88
Year 2= 3,300*1.05^2= 3,638.25
Year 3= 3,800*1.05= 3,990
Year 4= 4,000
Total= $15,101.13
