Question

At 6% effective annual interest, approximately how much will be accumulated in ten years if three payments of $100 are deposited every other year for four years, with the first payment occuring at t=0

Answer 1

There is a typo in this question that is three payments can be made for three years.

at t=0 first payment of $100 was made at 6% interest rate, accumulated amount =

at t=1 second payment of $100 was made at 6%, accumulated amount =

at t =3 third and last payment of $100 was made at 6% interest rate, accumulated amount =

Final Amount =

= 507.417473