You have just invested $3,000 into an account that will earn a 9% annual interest rate. You want to have
exactly $8,000 in the account at the end of 5 years. The account allows you to make one deposit at the end of the 3rd year. In order to have exactly $8,000 at the end of year 5, how much must you deposit at the end of the 3rd year?
Value in Year 5 = Value invested now * (1 + r) n = $3,000 * (1 + 0.09) 5 = $3,000 * 1.5386 =... View the full answer