U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 will be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually?

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Business

River

4 August, 04:10

U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 will be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually?

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Samir Ali · Answer 1

Total = $13,221.52

Explanation:

Giving the following information:

Deposited $3,200 in an account two years ago and is depositing another $5,000 today.

A final deposit of $3,500 will be made one year from now.

Interest expense = 4.85% compounded annually.

We need to calculate the final value of each deposit using the following formula:

FV = PV * (1+i) ^n

First deposit = 3,200 * (1.0485^5) = $4,055.01

Second deposit = 5,000 * (1.0485^2) = $5,496.76

Third deposit = 3,500 * (1.0485) = $3,669.75

Total = $13,221.52