If $2.200 is invested now. $3,700 two years from. now and $5,200 four years from

Question

If $2.200 is invested now. $3,700 two years from. now and $5,200 four years from now at an interest rate of 6% compounded annually, what will be the total amount in 8 years? Click the icon to view the interest factors for discrete compounding when ,-6% per year The total amount in 8 years will be . (Round to the nearest dollar.) More Info Present Worth Factor (PIA, i, N) 0.9434 1.8334 2.6730 3.4651 4.2124 Capital Recovery Factor (A/P, i, N) 1.0600 0.5454 0.3741 0.2886 0.2374 Compound Present Worth Factor Compound Sinking Amount Factor (FIA, i, N) 1.0000 2.0600 3.1836 4.3746 5.6371 Factor Factor (AF, i, N) 1.0000 0.4854 0.3141 0.2286 0.1774 (FIP i, N) (P/F, i, N) 1.1236 1.1910 1.2625 1.3382 0.9434 0.8900 0.8396 0.7921 0.7473 4.9173 5.5824 6.2098 6.8017 7.3601 1.4185 1.5036 1.5938 0.7050 0.6651 0.6274 0.5919 0.5584 6.9753 8.3938 9.8975 11.4913 13.1808 0.1434 0.1191 0.2034 0.1791 0.1610 0.1470 0.1359 0.0870 0.0759 1.7908 1.8983 2.0122 2.1329 2.2609 0.5268 0.4970 0.4688 0.4423 14.9716 16.8699 18.8821 21.0151 0.0668 0.0593 0.0530 0.0476 7.8869 8.3838 8.8527 9.2950 0.1268 0.1193 0.1130 0.1076 Enter your answer in the answer box and then click Check Answer. All parts showing 14

Explanation / Answer

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$2200(1.06)^8+$3700(1.06)^6+$5200(1.06)^4

=(2200*1.5938)+(3700*1.4185)+(5200*1.2625)

which is equal to

=$15320(Approx).

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