Given a 3 percent interest rate, compute the year 6 future value of deposits mad

ID: 1226679 • Letter: G

Question

Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,950, $2,250, $2,250, and $2,350.

What is the Future Value?

(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Hint* it is not the answer 10037.07 because I kept doing that and it says it's wrong answer

(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Hint* it is not the answer 10037.07 because I kept doing that and it says it's wrong answer

The Future Value of deposits in Year 6 = (1.03)5 * 1950 + (1.03)4 * 2250 + (1.03)3 * 2250 + (1.03)2 * 2350

= 1.159 * 1950 + 1.126 * 2250 + 1.093 * 2250 + 1.061 * 2350

= 2260.05 + 2533.50 + 2459.25 + 2493.35

= $ 9746.15

Conclusion:- The Future Value of deposits in Year 6 = $ 9746.15 (approx)

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