If you save $2,000 a year from today, and $3,000 three years from today in an...

If you save $2,000 a year from today, and $3,000 three years from today in an account that earns 8% per year, compounded quarterly, how much will you have in three years?

Group of answer choices

$5,519.42

$5,343.32

$5,332.80

$5,536.48

Solutions

Expert Solution

Amount you will have in 3 years = ($2,000 * (1 + 8% / 4)^(2*4)) + $3,000

= $2,343.32 + $3,000

= $5,343.32

Amount you will have in 3 years = $5,343.32

jeff jeffy answered 2 years ago

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