Juan decided to start saving for college.  He deposited $500 into an account that earns 4% simple annual interest. At the end of each year, he will add $250 to this account.  How much will he have in his account after the end of three years?  a $550  b $770  c $1,050.80  d $1,342.83

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Juan decided to start saving for college.  He deposited $500 into an account that earns 4% simple annual interest. At the end of each year, he will add $250 to this account.  How much will he have in his account after the end of three years?

 a
$550
 b
$770
 c
$1,050.80
 d
$1,342.83
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