document.write( "Question 1142568: trader needs ₦300,000 to improve her business, she deposits ₦110,000 in her savings account at 5% per annum compound interest. she then adds ₦50,000 to her savings at the end of each year.
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\n" ); document.write( "b) By how much is her savings greater or lesser than ₦300,000 at the end of the third year.
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Algebra.Com's Answer #763278 by ikleyn(52787) $\"\"$ $\"About$

You can put this solution on YOUR website!
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\n" ); document.write( "\n" ); document.write( " Although the problem does not say directly and explicitly that the account is compound annually, I will assume
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document.write( "Her account works as if she has two saving plans for 3 years each:\r\n" );
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document.write( "    - first plan is one-time deposit of ₦ 110000 at 5% APY interest compounded annually,  and\r\n" );
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document.write( "    - the second plan is the Ordinary annuity saving plan with annual deposits of  ₦ 55000 at 5% APY interest compounded annually.\r\n" );
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document.write( "So, her total Future Value is the sum of the Future Values of both of these saving plans.\r\n" );
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document.write( "For the first plan,  FV1 =  = 127338.75.\r\n" );
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document.write( "For the second plan,  FV2 =  = 173387.50.\r\n" );
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document.write( "The total Future Value is  FV = FV1 + FV2 = 127338.75 + 173387.50 = 300726.25.\r\n" );
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document.write( "ANSWER.  The total future value is  ₦ 300726.25,  and it is  ₦ 726.25  greater than  ₦ 300000.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On ordinary annuity saving plans, see my lessons \r
\n" ); document.write( "\n" ); document.write( " - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( " - Solved problems on Ordinary Annuity saving plans \r
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\n" ); document.write( "\n" ); document.write( "Regarding the post by @MathTherapy, it is difficult to me to comment it, since the post does not contain NEITHER setup NOR calculations.\r
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