SOLUTION: You deposit $500 in an account today and an additional amount X in one year. The account pays 3.5% annually. What amount X is required to have $2,000 in the account at the end of t

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Question 960438: You deposit $500 in an account today and an additional amount X in one year. The account pays 3.5% annually. What amount X is required to have $2,000 in the account at the end of three years?
Answer by josgarithmetic(39630) About Me  (Show Source):
You can put this solution on YOUR website!
First year, 500 dollars.
1.035%28500%29.

After one year, 500%281.035%29%2BX.

At the end of two more years, %28%28500%29%281.035%29%2BX%29%281.035%29%5E2=2000.

%28500%29%281.035%29%5E3%2BX%2A%281.035%29%5E2=2000
X%2A%281.035%29%5E2%2B500%281.035%29%5E2=2000
X%2A%281.035%29%5E3=2000-%28500%29%281.035%29%5E2
X=%282000-500%2A1.035%5E2%29%2F%281.035%29%5E3

X=%281464.3875%29%2F1.108717875
highlight%28X=1320.79%29