Jim deposits $5,000 today into an account that pays 13% per year, and follows it up with three more deposits at the end of each of the next 3 years. Each subsequent deposit is $2,000 higher than the previous one. How much money will Jim have accumulated in his account by the end of 3 years?

Jim deposits $5,000 today into an account that pays 13% per year, and follows it up with three more deposits at the end of each of the next 3 years. Each subsequent deposit is $2,000 higher than the previous one. How much money will Jim have accumulated in his account by the end of 3 years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 16PROB

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Question

Jim deposits $5,000 today into an account that pays 13% per year, and follows it up
with three more deposits at the end of each of the next 3 years. Each subsequent
deposit is $2,000 higher than the previous one. How much money will Jim have
accumulated in his account by the end of 3 years?

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