You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. If the account earns 4% interest, what will the account balance be by the end of year 3

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Business

Myles Mendez

20 June, 17:59

You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. If the account earns 4% interest, what will the account balance be by the end of year 3

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Lauren Galloway · Answer 1

The account balance by the end of year 3 will be : $5,283.2

Explanation:

You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. The account earns 4% interest.

The account balance at the end of year 1 = $2,000

The account balance at the end of year 2 = $2,000 x (1+4%) + $3,000 = $2,080 + $3,000 = $5,080

The account balance at the end of year 3 = $5,080 x (1+4%) = $5,283.2