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NNADVOKAT [17]
3 years ago
11

To save for retirement, Jamie decides to invest in an annuity that pays 5% annual interest, compounded annually. If Jamie contri

butes $2,000 annually for 20 years, how much interest would she earn during the 20 years?
Business
1 answer:
tatyana61 [14]3 years ago
6 0

Answer:

Interest= $26,131.91

Explanation:

Giving the following information:

Annual deposit= $2,000

Number of periods= 20 years

Interest rate= 5%

<u>First, we need to calculate the future value using the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,000*[(1.05^20) - 1]} / 0.05

FV= $66,131.91

<u>Now, we can determine the interest earned:</u>

Interest= future value - total investment

Interest= 66,131.91 - 20*2,000

Interest= $26,131.91

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At its simplest, acquisition management can be viewed as:
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Answer:

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Explanation:

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2. How has Taobao created economic opportunities for Chinese entrepreneurs that were inaccessible to them before?
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3 years ago
“jeremy, can you possibly give me a ride to the airport this sunday,” your friend ben asks. not thinking that this is a big deal
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2 years ago
Carlita began 2014 with a taxes payable account balance of $3,000. On December 31, 2014, its taxes payable account balance is $7
aleksandr82 [10.1K]

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$2,000

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The computation of the amount pay to the tax authorities during the year is shown below;

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