ou are hoping to buy a new boat 3 years from now

and you plan to save $4,200 (forty two hundred) per year, beginning one year from today.

You will deposit your savings in an account that pays 5.2% (five point two percent) interest.

HOW MUCH WILL YOU HAVE JUST AFTER YOU MAKE THE 3RD DEPOSIT, 3 YEARS FROM NOW?

Future investment value
$13,956.42
4,200*3=12600

13956.42-12600=1356.42

Total interest earned
$1,356.42

Year 1
I=Prt
= 4200*5.2%*1
=218.40
Year 1= 4418.40

Year 2
I=Prt
= (4418.40+4200)*5.2%*1
=8618.40*5.2%*1
=448.16
=8618.40+448.16
Year 2= 9066.56

Year 3
I=Prt
= (9066.56+4200)*5.2%*1
=13266.56*5.2%*1
=689.86
=13266.56+689.86
Year 3= 13956.42
 

Step-by-step explanation

Hi, hope this help you.

If you have any questions please feel free to comment for me.

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