Question

You are depositing $1,234 in a saving account now and two years from now you deposit another $2,345 into the same savings account that earns 3.456% annual interest.

How much money will you have at the end of 8 years?

Answer 1

4,494.68

Step-by-step explanation:

Formula

Fc = Ic (1+i) ^ n

Where;

Fc= Final Capital

Ic= Inicial Capital

i= interest rate

n= period

In this particular case:

Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6

Fc = 4,494.68