Question 1080906: You are a freshman in college and are planning a trip to Europe when you graduate from college at the end of four years. You plan to save the following amounts annually, starting today: $649, $698, $692, and $733. If the account pays 5.90 percent annually, how much will you have at the end of four years? (Round answer to 2 decimal places, e.g. 15.25.
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! at the beginning of the first year, you save $649.
at the beginning of the second year, you save $698.
at the beginning of the third year, you save $692.
at the beginning of the fourth year, you save $733.
if the account pays 5.90 percent annually, then:
at the end of the fourth year:
649 invested at the beginning of the first year will be worth 649 * 1.059^4 = 816.26
698 invested at the beginning of the second year will be worth 698 * 1.059^3 = 828.98
692 invested at the beginning of the third year will be worth 692 * 1.059^2 = 776.06
733 invested at the beginning of the fourth year will be worth 733 * 1.059^1 = 776.25
add them up and you will have a total of $3197.55 at the end of 4 years.
|
|
|
