Question: Hi wanting to know the difference between these two questions, I answered the first question, but am unsure why the second question would be a
Hi wanting to know the difference between these two questions, I answered the first question, but am unsure why the second question would be a different answer?
1. You deposit $5,000 today into an account paying interest of 4.5% p.a., compounded annually, and leave your money on deposit for three years. How much will you have at the end of the three years? To which I got $5,705.83
2. Instead of depositing $5,000 now, you will deposit $5,000 at the end of each year for the next three years into the same account paying 4.5%, compounded annually. How much will you have at the end of the three years?
How do I work out the second question?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
