Question

How much money would be in the bank at the end of 3 years if the proceeds from an investment that offers payments of $6,000 at the end of year 1; $4,000 at the end of year 2; and $2,000 at the end of year 3 were deposited in a savings account that paid 9 percent interest

Answer 1

Total= $13,488.6

Step-by-step explanation:

Giving the following information:

Year 1= $6,000

Year 2= $4,000

Year 3= $2,000

Interest rate= 9%

To calculate the final value, we need to apply the following formula:

FV= PV*(1+i)^n

Year 1= 6,000*1.09^2= 7,128.6

Year 2= 4,000*1.09= 4,360

Year 3= 2,000

Total= $13,488.6