Answer:
Balance of fund just at the end of fifth year = $35,000.9856 + $2,000
= $37,000.9856
When rounded to nearest dollar amount = $37,001
Explanation:
Provided, amounts are deposited annually,
Amount deposited assumed in the beginning of each year.
Thus, at the end of year 1 = $10,000 + 8% = $10,800
Amount deposited in second year = $8,000
Amount in the fund at end of second year = ($10,800 + $8,000) + 8% = $20,304
Amount added in third year = $6,000
Balance of fund at end of third year = ($20,304 + $6,000) + 8% = $28,408.32
Amount added in the 4th year = $4,000
Balance of fund at end of fourth year = ($28,408.32 + $4,000) + 8% = $35,000.9856
Amount added in fifth year = $2,000
Balance of fund just at the end of fifth year = $35,000.9856 + $2,000
= $37,000.9856
When rounded to nearest dollar amount = $37,001
