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9 December, 18:01

Suenette plans to save $600 at the end of Year 1, $800 at the end of Year 2, and $1,000 at the end of Year 3. If she earns 3.4 percent on her savings, how much money will she have saved at the end of Year 3?

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  1. 9 December, 18:16
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    Total savings = $2,468.7

    Explanation:

    Giving the following information:

    Suenette plans to save $600 at the end of Year 1, $800 at the end of Year 2, and $1,000 at the end of Year 3.

    Annual rate = 3.4%

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

    FV = PV * (1+i) ^n

    Deposit 1 = 600*1.034^2 = 641.50

    Deposit 2 = 800*1.034 = 827.2

    Deposit 3 = 1,000

    Total = $2,468.7
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