Given a 3 percent interest rate, compute the year 6 future value of deposits made in...

Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,700, $1,900, $1,900, and $2,200, respectively.

Expert Solution

Year	Cash flow	Future value of 1	Future value of cash flow
a	b	c=1.03^(6-a)	d=b*c
1	$ 1,700	1.15927	$ 1,970.77
2	$ 1,900	1.12551	$ 2,138.47
3	$ 1,900	1.09273	$ 2,076.18
4	$ 2,200	1.06090	$ 2,333.98

Total			$ 8,519.39

jeff jeffy answered 1 year ago

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