Ask Question
29 March, 17:05

You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 3rd deposit, 3 years from now?

+5
Answers (1)
  1. 29 March, 19:57
    0
    FV = $12,818.4

    Explanation:

    Giving the following information:

    You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest.

    To calculate the future value we need to use the following formula:

    FV = {A*[ (1+i) ^n-1]}/i

    A = annual deposit

    FV = {4,200*[ (1.052^2) - 1]}/0.052 + 4,200 = $12,818.4
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers