Your employer has agreed to place yearend deposits of $1,000, $2,000 and $3,000 into your retirement account. The $1,000 deposit will be one year from today, the $2,000 deposit two years from today, and the $3,000 deposit three years from today.

If your account earns 5% per year, how much money will you have in the account at the end of year three when the last deposit is made? I know this answer is $6,202.50.

How much interest was earned over the period?

What is this series of cash flow worth if your employer starts making the deposits today?