Stu deposited $400 in an account three years ago. Last year, he deposited $250 and plans...

Question

Question

Answer 1

Answer #1

Future value = Present value (1+Interest rate)^n, where n = number of years

In the above example, n = 8 years for the amount $400 , n= 7years for $250 , n=4years for $300

Rate of interest is 3%

Future value of $400 = 400 (1+3%)^8 = $506.71

Future value of $ 250 = 250 (1+3%)^7 = $307.47

Future value of $ 300 =300(1+3%)^4 = $337.65

Answer 2

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