You deposit $2200 into three separate bank accounts that each pay 3% annual interest. How much interest does each account earn a
1 answer:
You might be interested in
Answer:
The amount received after 5 years is 1827.39
Step-by-step explanation:
The amount received by Bridget from his grandfather as the birthday gift = 1400 .
Since he wants to deposit it and save for college, he earns interest rate = 5.4%
He deposited this money for the years = 5 years.
Here, the Present value (PV) is = 1400
Interest rate ( r ) = 5.4% or 0.054
Since the interest rate is compounded semi annually, So, n = 10
Now if we calculate the future value of 1400 with interest rate 5.4 percent:
Therefore, 1827.39 will be the total money in his account after five years.