The account balance by the end of year 4 will be 8427.
- The account balance will have an earning of 2% interest.
- We will make 2 deposits- one year from today and two years from today.
- If we make first deposit from one year after today so years left till 4 years will be 3 years (4-1=3).
- Now the second deposit will be made after 2 years from today, hence, years left for 4 years will be 2 (4-2=2).
Two deposits that are made will be as:
- Value of 5,000 deposits made after one year from today i.e 3 years of interest will be received 5000*(1.02)3 = 5306
- Value of 3,000 deposit made after 2 year from today i.e. 2 years of interest will be received 3000*(1.02)2 = 3121
Therefore account balance by the end of the year 4 = 5306 + 3121 = 8427
To know more about deposits, refer: https://brainly.com/question/14577167
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