Question

Assume that you want to replace your sailboat with a larger one in 3 years. To save for a

down payment for this purchase, you deposit $2,000 for 3 years in a bank account that pays
10% annual interest, compounded annually. How much will be in the account at the end of 4
years?

Answer 1

Answer: $11,600

Explanation:

$2000 * 10% = $200

y = 200x + $2,000

12 * 4 = 48

48 = x

y = 200(48) + $2,000

y = $9,600 + $2,000

y = $11,600