Jim deposits $3,000 today an account that pays 10% per year and follows it up with three more deposits at the end of each of the next 3 years. Each subsequent deposit is $2,000 higher than the previous one. How much money will jim have accumulated in his account by the end of 3 years?
Jim deposits $3,000 today an account that pays 10% per year and follows it up with three more deposits at the end of each of the next 3 years. Each subsequent deposit is $2,000 higher than the previous one. How much money will jim have accumulated in his account by the end of 3 years?
The amount accumulated in the account at the end of 3 years will be the aggregate future value of amounts deposited in the account at 10% per year.
First Deposit: $ 3,000 deposited today will earn compounded interest for 3 years.
Second Deposit: $ 5,000 will be deposited at the end of year and will earn compounded interest for 2 years.
Third Deposit: $ 7,000 will be deposited at the end of year and will earn compounded interest for 1 year.
Fourth Deposit: $ 9,000 will be deposited at the end of year. No interest will be earned on this deposit.
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