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mezya [45]
3 years ago
5

You receive $1,200 today, $2,200 in one year, and $3,300 in two years. If you deposit these cash flows in an account earning 12%

, how much money is in the account three years from now?
Business
1 answer:
Vilka [71]3 years ago
6 0

Answer:

The amount of money that is in the account three years from now is $8,142.

Explanation:

Future Value of $1200

FV = PV (1 + r )n

     = 1200*(1 + 12%)^3

     = $1685.91

Future Value of $2200

FV = PV (1 + r )n

     = 2200*(1 + 12%)^2

     = $2759.68

Future Value of $3300

FV = PV (1 + r )n

     = 3300*(1 + 12%)^1

     = $3696.00

Total Future Value = $1685.91 + $2759.68 + $3696.00

                               = $8142

Therefore, The amount of money that is in the account three years from now is $8,142.

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