Question

A charity plans to invest annual payments of $60,000, $70,000, $75,000, and $50,000, respectively, over the next four years. The first payment will be invested one year from today. Assuming the investment earns 5.5 percent annually, how much will the charity have available four years from now?

Answer 1

Answer:

$353,807$  $dollars$

Explanation:

Do 5.5 percent of each amount and add all together

$60,000 * (1.0553)

==> $63,318

$70,000 * 1.0552

==> $73,864

$75,000 * 1.055

==> $79,125

$50,000 * 2.750

==> $137,500

Then add them all together:

$63,318 + $73,864 + $79,125 + $137,500

==> $353,807