Based on the amount of money that Ashley is depositing, the amount she will save by the end of three years is $4,006.09.
What amount will Ashely save?
The amount that Ashely will save is:
= Amount saved per year x Future value of Annuity due factor, 3 years, 12%
Solving gives:
= 1,060 x 3.779
= $4,006.09
Full question is:
Ashley has a large and growing collection of animated movies. She wants to replace her old television with a new LCD model, so she has started saving for it. At the end of each year, she deposits $1,060 in her bank account, which pays her 12% interest annually. Ashley wants to keep saving for three years and then buy the newest LCD model that is available.
Find out more on the future value of annuity due at https://brainly.com/question/5303391.
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