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Amount in three years from now

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You just deposited $2,500 in a bank account that pays a 12% nominal interest rate, compounded quarterly.

If you also add another $5,000 to the account on year (12 months) from now and another $7,500 to the account two years from now, how much will be in the account three years (12 quarters) from now?

Please also show:
PV =
FV =
i =
n =
PMT =

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Solution Summary

The solution explains how to calculate the balance in the account in three years from now.

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This question is to be done in three parts as new amounts are added. First we find the future value of $2,500 at the end of 1 year, then add the next amount and find the FV at the end of year 2. Again add the next ...

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