Question

A trader needs $ 300,000to improve her business, she deposits $ 110000 in her savings account at 5% per annum compound interest. She then adds $ 50,000 to her savings at the end of each year.
(a) Find her total savings after 3 years.
( b) By how much is her savings greater or less than $300000 at the end of the third year.

Answer 1

I interpret it that there are three payments of 50,000 aside from the current deposit of 110,000
amount after 3 years
= 110,000(1.05)^3 + 50,000( 1.05^3 - 1)/.05
= ....

Answer 2

Answer

Answer 3

Answer