Ask Question
28 February, 01:53

You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $7,000 per year, beginning immediately. You will make 3 deposits in an account that pays 5.2% interest. Under these assumptions, how much will you have 3 years from today?

+2
Answers (1)
  1. 28 February, 04:19
    0
    The correct answer is $23,260.69.

    Explanation:

    According to the scenario, the given data are as follows:

    Payment (pmt) = $7,000

    Time period (n) = 3

    Rate of interest (r) = 5.2%

    So, we can calculate the future value by using following formula:

    FV = Pmt (1 + r) ^n + Pmt (1 + r) ^n-1 + Pmt (1 + r) ^n-2

    By putting the value, we get

    = $7,000 (1 + 0.052) ^3 + $7,000 (1 + 0.052) ^2+$7,000 (1 + 0.052) ^1

    = $23,260.69

    hence, The future value after 3 years will be $23,260.69.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $7,000 per year, beginning ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers