Question

Suenette plans to save $600 at the end of Year 1, $800 at the end of Year 2, and $1,000 at the end of Year 3. If she earns 3.4 percent on her savings, how much money will she have saved at the end of Year 3?

Answer 1

Answer:

Total savings= $2,468.7

Explanation:

Giving the following information:

Suenette plans to save $600 at the end of Year 1, $800 at the end of Year 2, and $1,000 at the end of Year 3.

Annual rate= 3.4%

To calculate the final value of the investment, we need to apply the following formula to each deposit:

FV= PV*(1+i)^n

Deposit 1= 600*1.034^2= 641.50

Deposit 2= 800*1.034= 827.2

Deposit 3= 1,000

Total= $2,468.7