Question

A student spend $400, $700 and $ 600 in years 2, 4, and 7 on purchasing necessary stationery. The total worth of these spends in year 10 at an interest rate of 5% will be equivalent to:

Answer 1

$FV = 400\times(1 + 0.05)^9 + 700\times1.05^7 + 600\times1.05^4 = 2,334.81.$