Help on these problems please for my test
1 answer:
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Answer:
A ) The Amount which will be saved after five years is $ 5742.4
B ) The compound Interest is $ 1742.4
Step-by-step explanation:
The Principal deposited at the end of each year = $ 4000
The rate of interest = 7.5 % compounded annually
The time period = 5 years
From compounded method :
Amount = principal ×
or, Amount = $ 4000 ×
Or, Amount = $ 4000 ×
or, Amount = $ 4000 × 1.4356
∴ Amount = $ 5742.4
A ) The Amount which will be saved after five years is $ 5742.4
B ) The compound Interest = Amount - principal
Or, C I = $ 5742.4 - $ 4000 is $ 1742.4 Answer