A fund earns interest at a rate of 5% per annum effective. A person makes three deposits of $100 each to the fund, the first one three years from now, the second four years from now and the final one seven years form now. How much will be in the fund ten years from now?
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
Solution: C
100(1 + .05)7 + 100(1 + .05)6 + 100(1.05)3 = 115.76 + 134.01 + 140.71 = 390.48
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.