5. you deposit p1000 into a 9% account today. at the end of two years, you will deposit another p3,000. in five years, you plan a p4000 purchase. how much is left in the account one year after the purchase?

Step-by-step explanation:

Since we are talking about compounded annual interest, we can use the Exponential Growth Formula to calculate the answer for this question.

Where:

First we need to calculate the total after 2 years with a 9% interest.

So after 2 years there will be £1,188.10 in the account. Now we can add £3000 to that and use the new value as the initial amount, and calculate the new total in 5 years.

So now we can subtract the £4000 purchase from the amount currently in the account, and calculate one more year of interest with the new initial amount.

So at the end you would have £2,662.86 in the account one year after the purchase.