Question

You want to go to europe 5 years from now, and you can save $3,100 per year, beginning one year from today. you plan to deposit the funds in a mutual fund that you think will return 8.5% per year. under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?

Answer 1

Answer:the answer above IS NOT CORRECT

Explanation:

Answer 2

This is the concept of application of compound interest, to calculate the amount I will have after the 5th deposit we proceed as follows;
A=p(1+r/100)^n
where;
A=future amount
p=principle
r=rate
n=number of years
thus substituting the values in our formula we get:
A=3,100(1+8.5/100)^5
A=3,100(1+0.085)^5
A=3100(1.085)^5
A=4,666.34
The amount of money after 5 years will be $4,666.24