Question

Given a 4 percent interest rate. Compute the year 6 future value of deposits made in years 1,2,3 and 4 of $1,450; $1650; $1,650 and $1,950 respectively

Answer 1

Answer: Future Value (Year 4) = $1,950 * (1 + 0.04)^3 Simplifying this equation, we get: Future Value (Year 4) = $1,950 * (1.04)^3