Question
In: Finance
1. You deposit $2000, $3000, and $4000 respectively at the end of years 1,2, and 3...
1. You deposit $2000, $3000, and $4000 respectively at the end of years 1,2, and 3 from today in a mutual fund providing 10% return. Draw a timeline and compute how much your savings will be worth in 3 years.
Solutions
Expert Solution
1)
| Year | Cash flows | FVIF@10% | Future value |
| 0 | $ - | 1.331 | $ - |
| 1 | $ 2,000 | 1.210 | $ 2,420.00 |
| 2 | $ 3,000 | 1.100 | $ 3,300.00 |
| 3 | $ 4,000 | 1.000 | $ 4,000.00 |
| Worth in 3 years |
$ 9,720.00 |
||
jeff jeffy answered 2 years agoRelated Solutions
1. You deposit $2000, $3000, and $4000 respectively at the end of years 1,2, and 3...
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