Question

You plan to deposit $600 in a bank account now and $700 at the end of one year. If the account earns 3% interest per year, what will the balance be in the account right after you make the second deposit? There will be sin the account right after the second deposit. (Type an integer or a decimal.)

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Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence A=$600*(1.03)^1+$700

=$1318

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