Question

You plan to deposit $ 700 in a bank account now and $ 300 at the end of the year. If the account earns 4 % interest per​ year, what will be the balance in the account right after you make the second​ deposit?

Answer 1

Investment balance= $1,028

Step-by-step explanation:

Giving the following information:

You plan to deposit $ 700 in a bank account now and $ 300 at the end of the year.

Interest rate= 4%

To determine the balance after the second deposit, we need to use the following formula for the first deposit and add the second one:

FV= PV*(1+i)^n

FV= 700*1.04= $728

Investment balance= 728 + 300= $1,028