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A service contract for a video projection system costs $70 a year. you expect to use the system for five years. instead of buying the service contract, what would be the future value of these annual amounts after five years if you earn 3 percent on your savings?

User Gshpychka
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The value of $70.00 invested each year for five years, at an annual interest rate of 3% is as follows, and assumes the interest is left in the account at the end of each year. Principal Interest balance at end of year Year 1 $ 70.00 $ 2.10 $ 72.10 Year 2 $142.10 $ 4.20 $146.30 Year 3 $216.30 $ 6.49 $222.79 Year 4 $292.79 $ 8.79 $301.58 Year 5 $371.58 $11.14 $382.72 - final value at the end of five years
User Louisfischer
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