U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 will be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually?

Question

Rodney Horn

Business

25 September, 01:23

U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 will be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually?

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Answers (1)

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Cory Mccarthy · Answer 1

Total = $13,221.52

Explanation:

Giving the following information:

Deposited $3,200 in an account two years ago and is depositing another $5,000 today.

A final deposit of $3,500 will be made one year from now.

Interest expense = 4.85% compounded annually.

We need to calculate the final value of each deposit using the following formula:

FV = PV * (1+i) ^n

First deposit = 3,200 * (1.0485^5) = $4,055.01

Second deposit = 5,000 * (1.0485^2) = $5,496.76

Third deposit = 3,500 * (1.0485) = $3,669.75

Total = $13,221.52