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You will deposit $300 per year for the next 5 years. You expect the interest rate...

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Finance

You will deposit $300 per year for the next 5 years. You expectthe interest rate 1 year from now to be 8%, 2 years from now to be8%, 3 years from now to be 12%, and 4 years from now to be 9%. Ifyour forecast of interest rates is correct, how much money will youhave 5 years from now?

Round your answer to 2 decimal places, for example 100.12.

Answer & Explanation Solved by verified expert
4.2 Ratings (507 Votes)
First 300 will be deposited in year 1 and will earn interest at 8 for 4 years second 300 will be deposited in year 2 and will earn interest at 8 for 3 years third    See Answer
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