You opened a savings account seven years ago and deposited $1,500 at that time. Five years...

Question

Question

Answer 1

Answer #1

The future value is computed as shown below:

Future value = Present value / (1 + r)ⁿ

= $ 1,500 x 1.06⁷ + $ 1,200 x 1.06⁵ + $ 600

= $ 2,255.445388 + $ 1,605.870693 + $ 600

= $ 4,461.32 Approximately

So, the correct answer is option b i.e. $ 4,461.32

Feel free to ask in case of any query relating to this question

Answer 2

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