Answer:
$30,185.144
Explanation:
Deposit = $4,500
Annual Interest rate = 7.2%
Amount after 45 year = Deposit x ( 1 + interest rate )^45
Amount after 45 year = $4,500 x ( 1+ 7.2% )^45
Amount after 45 year = $4,500 x ( 1+ 0.072 )^45
Amount after 45 year = $4,500 x ( 1.072 )^45
Amount after 45 year = $102,796
.388
Amount after 40 year = Deposit x ( 1 + interest rate )^40
Amount after 40 year = $4,500 x ( 1+ 7.2% )^40
Amount after 40 year = $4,500 x ( 1+ 0.072 )^40
Amount after 40 year = $4,500 x ( 1.072 )^40
Amount after 40 year = $72,611
.252
Additional Interest = Amount after 45 year - Amount after 40 year
Additional Interest = $102,796.388 - 72,611.252
Additional Interest = $30,185.136
