Question

If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in 8 years, and withdraw the entire sum 3 years after the final deposit, how much will you withdraw? Interest is 7 percent.

Answer 1

Answer:

$8,831.27

Explanation:

The computation is shown below:

After 3 years

Amount = $2,000 × 1.07^3 - $1,000

             = $2450.086  - $1,000

             = $1,450.086

After 5 years

Amount = $1,450.086 × 1.07^2 + $3,000

              = $1,660.203 + $3,000

              = $4,660.203

After 8 years

Amount = $4,660.203 × 1.07^3 + $1,500

              = $5,708.95 + $1,500

              = $7,208.95

Now withdrawn amount equal to

= $7208.95 × 1.07^3

= $8,831.27

Answer 2

The withdrawal amount is $8,831.27

• The calculation is as follows:

After 3 years

Amount = $2,000 × 1.07^3 - $1,000

             = $2450.086  - $1,000

             = $1,450.086

After 5 years

Amount = $1,450.086 × 1.07^2 + $3,000

              = $1,660.203 + $3,000  

             = $4,660.203  

After 8 years  

Amount = $4,660.203 × 1.07^3 + $1,500  

             = $5,708.95 + $1,500  

             = $7,208.95

Now

The withdrawn amount equal to

= $7208.95 × 1.07^3

= $8,831.27

Learn more: brainly.com/question/17429689