29 Dec '07 00:21>
I did a calculation for I(2) and here are my results.
1.03{240,000(1.05)^(2) -60,000 + 1.03[240,000(1.05)^(2-1) -60,000 + 1.03[240,000(1.05)^(2-2) - 60,000] ] }
after simplification I come up with $ 611,121.66 in the bank
this is after 3 years
1986 I(0) = $185,400
1987 I(1) = $377,400
1988 I(2) = $611,121.66
I might need to change the formula a bit...... Just in th I(0) the interest isnt compounded till I (1) this changes the number a bit
1.03{240,000(1.05)^(2) -60,000 + 1.03[240,000(1.05)^(2-1) -60,000 + 1.03[240,000(1.05)^(2-2) - 60,000] ] }
after simplification I come up with $ 611,121.66 in the bank
this is after 3 years
1986 I(0) = $185,400
1987 I(1) = $377,400
1988 I(2) = $611,121.66
I might need to change the formula a bit...... Just in th I(0) the interest isnt compounded till I (1) this changes the number a bit