Ask Question
23 November, 02:45

One year ago, the Jenkins Family Fun Center deposited $4,900 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,700 to this account. They plan on making a final deposit of $8,900 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent?

+3
Answers (1)
  1. 23 November, 04:10
    0
    The available amount will be $21,730

    Explanation:

    To calculate this, we first of all have to compute the total deposit into the account, and add the 6% rate of return to get the total amount.

    Total amount deposited = 4,900 + 6,700 + 8,900 = $20,500

    6% rate of return = 6% of $20,500

    = 0.06 * 20,500 = $1,230

    Therefore total amount available = amount deposited + rate of return

    = $20,500 + 1,230 = $21,730
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “One year ago, the Jenkins Family Fun Center deposited $4,900 into an investment account for the purpose of buying new equipment four years ...” 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