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18 February, 20:13

John decided to start saving for college. He deposited $500 into an account which earns 4% simple annual interest. At the end of each year, he will add $250 to this account. How much will he have in his account after the end of three years?

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  1. 18 February, 21:56
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    Fv=500 * (1+0.04*3) + 250 * (1+0.04*2) +

    250 * (1+0.04*1) = 560+270+260=1,090
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