what will be the value of the fund after three years

Question

Megan is already looking ahead to graduation and a job, and she wants to buy a new car not long after her graduation. If after graduation she begins an investment program of $2,400 per year in an investment yielding 4 percent, what will be the value of the fund after three years? (Hint: Use Appendix A.3 or the Garman/Forgue companion website.) Round Future value of Series of Equal Amounts in intermediate calculations to four decimal places.

I've already tried 2,400(1.04)^3 = 2,699.6737 and it's still wrong and i'm not sure what else to do

Answer 1

You are almost there. That is what the first deposit will be worth.2400*(1.04^3. The second will only have had 2 years to accrue. 2400(1.04)^2 + the third is worth 2400(1.04). If you add them up that would be the future value.