Question

A trader needs $300000 to improve her business, she deposits $110000 in her savings account at 5% per annum compound interest. she then adds $50000 to her savings at the end of each year find

(a) her total savings after 3 years.
(b)by how much is her savings greater or less than $300000 at the end of the third year​

Answer 1

interpret it that there are three payments of 50,000 aside from the current deposit of 110,000

amount after 3 years

= 110,000(1.05)^3 + 50,000( 1.05^3 - 1)/.05