Problem:
One year ago, the Jenkins Family Fun Center deposited $3,800 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,600 to this account. They plan on making a final deposit of $7,800 to the account next year.
Required:
Question: How much will be available when they are ready to buy the equipment, assuming they earn a 6 percent rate of return?
- $20,430.48
- $21,445.05
- $20,093.28
- $18,920.17
- $20,892.66
Note: Explain all steps comprehensively.