Question #78823
Compute the future value in year 8 of a $3,500 deposit in year 1 and another $3,000 deposit at the end of year 3 using a 10 percent interest rate.
Expert's answer
First deposit $3,500
$3,500 -beginning of 1 year
$3,500*1.1 ^8= $7,502.56 - at the end of year 8
Another deposit $3,000
$3,000*1.1^3= $3,993- at the end of year 3
Answer: the future value of the first deposit is $7,502.56 at the end of year 8,
and the future value of the second deposit is $3,993 at the end of year 3
$3,500 -beginning of 1 year
$3,500*1.1 ^8= $7,502.56 - at the end of year 8
Another deposit $3,000
$3,000*1.1^3= $3,993- at the end of year 3
Answer: the future value of the first deposit is $7,502.56 at the end of year 8,
and the future value of the second deposit is $3,993 at the end of year 3
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