Question

You plan to deposit $3,000 today, $3,000 in one year and $3,000 in two years into an account earning 3.7% interest. What will the account balance be in 4 years? Round to the nearest cent.

Answer 1

Future Value = Sum [ Dep * FVF(r%, n) ]

r = Int rate per anum

n = No. of Balance Years

Year	Bal Yrs	Cash Flow	FVF @3.7%	FV of CF
0	4	$ 3,000.00	1.1564	$   3,469.26
1	3	$ 3,000.00	1.1152	$   3,345.47
2	2	$ 3,000.00	1.0754	$   3,226.11
3	1	$             -	1.0370	$               -
4	0	$             -	1.0000	$               -
FV of CFs				$ 10,040.84

Balance in account after 4 Years is $ 10040.84