3 O 80000 SolutionWe use the formula AP1r100n where Afuture

Solution

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$500*(1.05)^3+$1000*(1.05)

=(500*1.157625)+($1000*1.05)

=$1628.81(Approx).