Question

Compute the future value in year 7 of a $5,500 deposit in year 1, and another $5,000 deposit at the end of year 4 using an 8 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Answer 1

FV₇ = $5,500 × (1 + 0.08)⁶ + $5,000 × (1 + 0.08)³

FV₇ = $15,026.37