What does it mean to be a storehouse of value?
2 answers:
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Answer:
a. $1010.83
b.$1066.77
c. $1138.00
d.$13,269.22
Step-by-step explanation:
Given the annual rate as 13%(compounded monthly) and the principal amount as $1000.
a. #first we calculate the effective annual rate;
The compounded amount after 1 month is therefore:
Hence, the principle after one month is $1010.83
b. The principal after 6 months:
-From a above we have the effective annual rate as 0.1380 and our time is 6 months:
Hence, the principal after 6 months is $1066.77
c.The principal after 1 year:
-From a above we have the effective annual rate as 0.1380 and our time is 12 months:
Hence, the principal after 1 year is $1138.00
d. The principal after 20years:
-From a above we have the effective annual rate as 0.1380 and our time is 20yrs:
Hence, the principal after 20 years is $13,269.22