Question

If you deposit $1,000 at the end of year one, $2,000 at the end of year two and $3,000 at the end of year three, approximately how much will you have at the end of 3 years? Assume a 7% annual interest rate throughout and all deposits are made at the end of the year.

Answer 1

"$6285" is the right solution.

Step-by-step explanation:

The given values are:

Present value

P = $1,000

Rate

r = 7%

Now,

⇒
`A=P(1+(1)/(100))^n`

⇒
`=1000* (1.07)^2+2000* (1.07)+3000`

⇒
`=1144.9+2140+3000`

⇒
`=6284.9`

i.e.,
`=6285`$