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Iteru [2.4K]
3 years ago
12

If you deposit an amount of $1000 today (January 1st) and continue depositing into the account an amount growing by 5% per annum

at the end of each subsequent year for five years, what balance will you have in the account at the end of the 5th year? (r = 10% p.a.)
$ 3,150
$4,150
$5,150
$6,150
Business
1 answer:
Bezzdna [24]3 years ago
7 0

Answer:

$5,525.63

Explanation:

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1

R = interest rate

n = number of years

((1.05)^5 - 1) / 0.05 = 5.525631

$1000 x 5.525631 = $5,525.63

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2 years ago
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Answer:

16%

Explanation:

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= 19.5% × ($525 ÷ 525 + 181.08) + 9.4% × (1 - 0.39) × ($181.08 ÷  525 + 181.08)

= 19.5% ×0.744 + 5.734% × 0.256

= 15.975%

= 16%

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