Question

You deposit $400 today, $600 one year from now, and $800 five years from now into an account that earns 4% compounded annually. How much money will you have 11 years from now? (Round to the nearest whole dollar) $2,429 $2,516 $1,872 $2,384 $3,316

Answer 1

Total money = $2,516 (Approx)

Step-by-step explanation:

Given:

Amount deposit = $400 (For 11 year)

Amount deposit = $600 (For 10 year)

Amount deposit = $800 (For 6 year)

Rate of interset = 4% = 0.04

Find:

Total money.

Computation:

For 11 year

`Amount =400[1+0.04]^(11)\\\\Amount = 615.78`

For 10 year

`Amount =600[1+0.04]^(10)\\\\Amount = 888.14`

For 6 year

`Amount =800[1+0.04]^(6)\\\\Amount = 1,012.25`

Total money = $615.78 + $888.14 + $1,012.25

Total money = $2,516 (Approx)