Answer:
Total FV= $3,433,859.29
Explanation:
<u>First, we will calculate the future value of each equal annual deposit. Then, the ending value in 33 years of investment as a whole.</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV1= {3,500*[(1.137^6) - 1]} / 0.137= $29,648.89
FV2= {8,800*[(1.137^11) - 1]} /0.137= $199,476.80
FV3= {14,400*[(1.137^16) - 1]} /0.137= $714,882.03
<u>Now, the total future value:</u>
FV= PV*(1+i)^n
FV1= 29,648.89*(1.137^27)= 949,600.61
FV2= 199,476.80*(1.137^17)= 1,769,376.65
FV3= 714,882.03
Total FV= $3,433,859.29
