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29 October, 17:30

How much money would be in the bank at the end of 3 years if the proceeds from an investment that offers payments of $6,000 at the end of year 1; $4,000 at the end of year 2; and $2,000 at the end of year 3 were deposited in a savings account that paid 9 percent interest

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  1. 29 October, 21:06
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    Total = $13,488.6

    Explanation:

    Giving the following information:

    Year 1 = $6,000

    Year 2 = $4,000

    Year 3 = $2,000

    Interest rate = 9%

    To calculate the final value, we need to apply the following formula:

    FV = PV * (1+i) ^n

    Year 1 = 6,000*1.09^2 = 7,128.6

    Year 2 = 4,000*1.09 = 4,360

    Year 3 = 2,000

    Total = $13,488.6
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