Question

Suppose you plan to deposit $100 into an account in one yearand $300 into the account in three years. How much will be in theaccount in five years if the interest rate is 8%

Answer 1

future value =$485.97

Step-by-step explanation:

given data

1 year present value = $100

3 year present value = $300

rate = 8%

solution

we get her future value that is

FV =
`PV* (1+r)^n` ............................1

put here value

future value =
`100* (1+0.08)^4 + 300 * (1+0.08)^2`

future value =$485.97