Suppose today is July 1, 2004, and you deposit $2,000 into an account today. Then you deposit

Question:

Suppose today is July 1, 2004, and you deposit $2,000 into an account today. Then you deposit $1,000 into the same account on each July 1, beginning in 2005 and continuing until the last $1,000 deposit is made on July 1, 2010. Also, assume that you withdraw $3,000 on July 1, 2012. Assuming a 7 percent annual rate, what will be the balance in the account at the close of business on July 1, 2014?

Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...