Answer:
The answer is option a). $16,111.99
Explanation:
To calculate the total amount amount you will have after 4 years, we need to sum the total amount after the end of each year for four years.
a). Total amount at the end of the first year
Total amount=Deposit+Interest
where;
Deposit=$3,500
Interest=Deposit×interest rate×number of years=3,500×(5.7/100)×1=199.5
replacing;
Total amount after the end of the first year=(3,500+199.50)=$3,699.50
b). Total amount at the end of the second year
Deposit for the second year=Total amount after end of first year+3,500
Deposit for the second year=(3,699.50+3,500)=7,199.50
Total amount at the end of the second year=Deposit+Interest
Total amount at the end of the second year=7,199.50+(7,199.50×5.7/100×1)=7,609.8715
Total amount after the end second year=$7,609.8715
c). Total amount at end of the third year
Deposit for the third year=Total amount after end of second year+3,500
Deposit for the third year=(7,609.8715+3,500)=11,109.8715
Total amount at the end of the third year=Deposit+Interest
Total amount at the end of the third year=11,109.8715+(11,109.8715×5.7/100×1)=11,743.134
Total amount for the end of the third year=$11,743.134
d). Total amount at end of fourth year
Deposit for the fourth year=Total amount at the end of the second year+3,500
Deposit for the fourth year=(11,743.134+3,500)=15,243.134
Total amount at the end of the fourth year=Deposit+Interest
Total amount at the end of the third year=15,243.134+(15,243.134×5.7/100×1)=16,111.99
Total amount for the end of the fourth year=$16,111.99
4 years from now, you will have $16,111.99
