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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Business

Braeden George

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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Dj · Answer 1

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