At the beginning of each year, Joe invests $10,000 in his retirement fund. The fund gives 10% interest, compounded annually. At the end of the third year, how much money will be in Joe's fund?
+130511 I think you forgot about the "front-end" deposits made in years 2 and 3....
At the end of the first year, the account is worth ... (10,000)(1.1) = $11, 000
At the start of the second year....he deposits $10,000 more dollars.....so the account is worth (11000 + 10000)(1.1) = $23,100 at the end of the second year.
At the start of the 3rd year $10,000 is added to this, so the account balance at the end of the third year is just(23,100 + 10000)(1.1) = $36,410
here is the link: http://web2.0calc.com/questions/at-the-beginning-of-each-year-joe-invests-10-000-in-his-retirement-fund-the-fund-gives-10-interest-compounded-annually-at-the-end-of-t
+130511 I think you forgot about the "front-end" deposits made in years 2 and 3....
At the end of the first year, the account is worth ... (10,000)(1.1) = $11, 000
At the start of the second year....he deposits $10,000 more dollars.....so the account is worth (11000 + 10000)(1.1) = $23,100 at the end of the second year.
At the start of the 3rd year $10,000 is added to this, so the account balance at the end of the third year is just(23,100 + 10000)(1.1) = $36,410
