One year ago, the Jenkins Family Fun Center deposited $4,900 into an investment account for the...

One year ago, the Jenkins Family Fun Center deposited $4,900 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,700 to this account. They plan on making a final deposit of $8,900 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent?

Expert Solution


Time	Opening Balance	Deposit	Total Balance	Interest	Closing Balance
1.00	-	4,900.00	4,900.00	294.00	5,194.00
2.00	5,194.00	6,700.00	11,894.00	713.64	12,607.64
3.00	12,607.64	8,900.00	21,507.64	1,290.46	22,798.10
4.00	22,798.10		22,798.10	1,367.89	24,165.98

Amount available when ready to buy the equipment	24,165.98

jeff jeffy answered 1 year ago

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