Two years ago, Margo deposited $500 into a savings account. One year ago, she deposited an additional $300, and today she deposited $800. Which one of these is these is the correct formula for computing the value of these deposits today at a rate of 4 percent?

A. PV2 = 5500/1.042) + ($300/1.04) + $800

B. FV2 = (S500x 104) ($3001.04) $800

C. FV2 = ($500 x 1.04) + ($300 x1.04) + ($800 x 1.04)

D. FV2 = ($500 x 104) + $300 $800/1.04

Question

Micah Chaney

Business

25 January, 00:35

Two years ago, Margo deposited $500 into a savings account. One year ago, she deposited an additional $300, and today she deposited $800. Which one of these is these is the correct formula for computing the value of these deposits today at a rate of 4 percent?

A. PV2 = 5500/1.042) + ($300/1.04) + $800

B. FV2 = (S500x 104) ($3001.04) $800

C. FV2 = ($500 x 1.04) + ($300 x1.04) + ($800 x 1.04)

D. FV2 = ($500 x 104) + $300 $800/1.04

+5

Answers (1)

Know the Answer?

Jabari Cobb · Answer 1

Answer: none is correct.

Explanation:

Given dа ta:

2 years ago = $500

1 year ago = $300

Today = $800

Solution:

PV (presents value)

= p * r * t

Where:

p = principal ($500, $300, $800)

r = rate = 4%

t = duration (time) (2years, 1 year and present).

= ($500 * 2 * 0.04) + ($300 * 1 * 0.04) + $800

= $40 + $12 + $800

= $852

PV = $500 + $300 + $852

= $1,652.