You deposit 2000 in an account earning 3% interest compounded monthly.
1 answer:
Answer:
a. 3641.51
b. 1641.51
Step-by-step explanation:
The future value formula will tell you the amount in the account in 20 years.
<h3>Formula</h3>FV = P(1 +r/n)^(nt)
Principal P is compounded n times per year at annual rate r for t years.
<h3>Application</h3>The future value of the account with P=2000, r=0.03, n=12, and t=20 will be ...
FV = 2000(1 +0.03/12)^(12·20) = 2000(1.0025^240) ≈ 3641.50999
<h3>a.</h3>The account value in 20 years will be 3641.51.
<h3>b.</h3>The first 2000 of account value is the principal, so the interest is ...
interest = 3641.51 -2000
interest = 1641.51
__
<em>Additional comment</em>
Many calculators and all spreadsheets have built-in capability for making this calculation.
You might be interested in
Answer:
The number of U.S stamp he has is <u>120</u>.
Step-by-step explanation:
John has us and foreign stamps in his album. the ratio of the number of U.S stamps to foreign stamps is 5:2.
After Paul gives him 12 foreign stamps the ratio becomes 2:1.
Now, to find the number of U.S stamps.
Let the U.S stamps be
And the foreign stamps be
Now, to solve by using cross multiplication method:
<em>So, the ratio is:</em>
By cross multiplying we get:
<em>Dividing both sides by 2 we get:</em>
......(1)
Now, after Paul gives him 12 foreign stamps the ratio becomes:
<em>By cross multiplying we get:</em>
Putting the value of as we get in above equation (1):
<em>Multiplying both sides by 2 we get:</em>
<em>Subtracting both sides by 4y we get:</em>
The number of foreign stamps = 48.
Now, to get the number of U.S stamps by putting the value of in equation (1):
Therefore, the number of U.S stamp he has is 120.