Question

Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of uear three at 4.5 percent interest. How much money will he have saved in total at the end of year three?

Answer 1

Answer:

Final value= $2,282.013

Explanation:

Giving the following information:

Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of year three at 4.5 percent interest.

To calculate the total final value of the investment, we need to use the following formula for each deposit:

FV= PV*(1+i)^n

Deposit 1= 500*1.045^2= 546.013

Deposit 2= 800*1.045= 836

Deposit 3= 900

Final value= $2,282.013