Joe is planning to invest the following amounts at 5% interest. How much money will he...

Joe is planning to invest the following amounts at 5% interest. How much money will he have saved at the end of year 3?

End of Year	Amount Saved
1	$700
2	$600
3	800$

Expert Solution

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

A=700*(1.05)^2+600*(1.05)+800

=$2201.75

jeff jeffy answered 2 years ago

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