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If you deposit $1,000 at the end of year one, $2,000 at the end of year two and $3,000 at the end of year three, approximately how much will you have at the end of 3 years? Assume a 7% annual interest rate throughout and all deposits are made at the end of the year.

User Dean Taler
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1 Answer

2 votes

Answer:

"$6285" is the right solution.

Step-by-step explanation:

The given values are:

Present value

P = $1,000

Rate

r = 7%

Now,


A=P(1+(1)/(100))^n


=1000* (1.07)^2+2000* (1.07)+3000


=1144.9+2140+3000


=6284.9

i.e.,
=6285$

User Igor Ronner
by
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