Question

You are a freshman in college and are planning a trip to Europe when you graduate from college at the end of four years. You plan to save the following amounts starting today: $625, $700, $700, and $750. If the account pays 5.75 percent annually, how much will you have at the end of four years?

Answer 1

You will have $3439 available.

Explanation:

You have in total 625+700+700+750 = $2750. Each year this amount is multiplied by 1.0575, hece at the end of four years, you will have

2750 * 1.0575⁴ = $3439, thus at the end of 4 years you will have $3439 available.