One year ago, the Jenkins Family Fun Center deposited $3,800 in an investment ac
ID: 2630444 • Letter: O
Question
One year ago, the Jenkins Family Fun Center deposited $3,800 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,600 to this account. They plan on making a final deposit of $7,800 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a 6 percent rate of return?
One year ago, the Jenkins Family Fun Center deposited $3,800 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,600 to this account. They plan on making a final deposit of $7,800 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a 6 percent rate of return?
Explanation / Answer
3800*1.06^5 + 5600*1.06^4 + 7800*1.06^3 = $21445.05
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