Question

A. Suppose you have just inherited a sum of money. Let’s say you choose to invest the money. How much did you inherit? Choose an amount between $1000 and $100,000. Do not choose an increment of 1000. In other words, do not choose $1000, $2000, $5000, $14000, etc.
B. What is your interest rate? Choose a rate between 0.5% and 3%.
C. Using yearly compounding, calculate the accrued value after 5 years, 10 years, and 15 years. Show all work. You may show your work as an inserted image.

Answer 1

Amount =$48003.20

Step-by-step explanation:

Here apply the compound interest formula;

$A=P(1+\frac{r}{n} )^{nt}$

where;

P=Principal amount invested = $37500

r=rate of interest as a decimal, 2.5% =0.025

n=number of compounding per year=1

t=time period the amount in invested=10

In our case, the amount after investing will be;

$A=37,500(1+0.025)^{10} \\\\A=37,500(1.025)^{10} \\\\A=48003.20$

Interest earned after the period= $48003.20-$37500 =$10503.20

Learn More

Compound Interest formula application: brainly.com/question/7014337

Keywords: inherit, sum, money, interest

#LearnwithBrainly