12. Tiffany opened a saving account today and she immediately puts $7,000 into it. She plans...
12. Tiffany opened a saving account today and she immediately puts $7,000 into it. She plans to contribute another $13,000 one year from now, and $15,000 two years from now. The saving account pays an 8% annual interest rate. If she makes no other deposits or withdrawals, how much will she have in the account 10 years from today?
Homework Answers
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=7000*(1.08)^10+13000*(1.08)^9+15000*(1.08)^8
which is equal to
=$68863.49(Approx).
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