Question

Compute the future value in year 9 of a $2,742 deposit in year 1, and another...

Compute the future value in year 9 of a $2,742 deposit in year 1, and another $4,960 deposit at the end of year 4 using an 10 percent interest rate. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR.

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Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=2742*(1.1)^8+4960*(1.1)^5

which is equal to

=13866(Approx).

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