Krystal plans to save $500 at the end of Year 1, $600 at the end of Year 2, and $800 at the end of Year 3. If she earns 2.8 percent on her savings, how much money will she have saved at the end of Year 3?

$1,945.19

Explanation:

The amount which will be saved by the Krystal at the end of year 3 shall be determined using the following method:

Saving made at end of Year 1=$500(1+2.8%)^2=$528.39

Saving made at end of Year 2=$600(1+2.8%)^1=$616.80

Saving made at end of Year 3=$800(1+2.8%)^0=$800

Total amount at end of year 3=$1,945.19

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