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3. You invest $400 today, $500 next year, and $600 in 3 years from now. How much will you have 10 years from now ifyou are earning 12% on your savings? A) $7,500 B) $8,600 C) $3,955 D) $2,810

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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.

A=400*(1.12)^10+$500*(1.12)^9+$600*(1.12)^7

which is equal to

=$3955(Approx).

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