a man begins a savings with $7000 each year added to what had the previous year more 7% of this amount would model of ends that saving for three years? and how that is determined?
(a) (7000 + (7000) 7/100 + (7000 + (7000) 7/100) 7/100)
(b) (7000 + (7000) 100/7 + (7000 + (7000) 100/7) 100/7)
(c) (7000 + (7000) 7/100) 7/100
(d) (7000 + (7000) 100/7) 100/7 [BING TRANSLATOR]
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FV=P{[1 + R]^N - 1/ R}=FV OF $1 PER PERIOD . This is the right formula to use for your problem.
FV=7,000 {[1 + 7%]^3 - 1 / 7%}
FV=7,000{1.07^3 - 1 / .07}
FV=7,000{1.225043 - 1 / .07}
FV=7,000{0.225043 / .07}
FV=7,000 x 3.2149
FV=22,504.30. FV=Future Value. P.S. The 7,000 is assumed to be deposited at the end of the year.