Question

Assume you deposit $400 into an account today and another $600 into the same account three years from now, how much will you have in your account exactly ten years from today? The account pays interest of 7% p.a.

PLEASE SHOW WORK!

Answer 1

Year	Investment at the beginning of the period	Interest for the year	Additional investment	Investment at the end of the period
	a	b=a*7%	c	d=a+b+c
1	$              400.00	$                        28.00	0.00	$               428.00
2	$              428.00	$                        29.96	0.00	$               457.96
3	$              457.96	$                        32.06	600.00	$           1,090.02
4	$           1,090.02	$                        76.30	0.00	$           1,166.32
5	$           1,166.32	$                        81.64	0.00	$           1,247.96
6	$           1,247.96	$                        87.36	0.00	$           1,335.32
7	$           1,335.32	$                        93.47	0.00	$           1,428.79
8	$           1,428.79	$                     100.02	0.00	$           1,528.81
9	$           1,528.81	$                     107.02	0.00	$           1,635.82
10	$           1,635.82	$                     114.51	0.00	$           1,750.33
	Thus,
		Value of investment 10 years from now is		$           1,750.33