Answer:
please explain english we dont understand
Explanation:
Answer:
We will have $3227 at the end of 4 years.
Explanation:
In this case we are saving money each year starting with $650 in the first year, $670 in the second. $670 in the third and $830 in the last year which means the $650 saved in the first year will earn interest for 4 years, $670 for 3 years , then $670 for 2 years and $830 for 1 year. Now we have to find out the ending amount of each payment and add them up.
Future Value = Present value*(1+Interest rate)^Number of years.
FV 1st year savings=650*(1.0570)^4=811
FV 2nd year savings= 670*(1.0570)^3=791
FV 3rd year savings = 670*(1.0570)^2=748
FV 4th year savings= 830*(1.0570)^1=877
Add them all up to find how much will we have at the end of four years
=$3227
