Find the principal amount invested if there is $9300 in the account after 5 years and earned 4% simple interest per year.

Mathematics

1 answer:

Zielflug [23.3K]2 years ago

4 0

Answer:

11314.87379 (This is still rounded).

Step-by-step explanation:

Year 1:

9300*4%=372. 9300+372=9672.

Year 2:

9672*4%=386.88. 386.88=10058.88.

Year 3:

10058.88*4%=402.3552. 402.3552+10058.88=10461.2352.

Year 4:

10461.2352*4%=418.449408. 418.449408+10461.2352=10879.68461

Year 5:

10879.68461*4%=435.1873843. 435.1873843+10879.68461=11314.87379.

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Use your TVM Solver to determine the future balance in a mutual fund account (a type of investment account) if you make weekly p

Paladinen [302]

Answer:

$46,141.71

Step-by-step explanation:

This looks about right, based on weekly deposits for the duration. However, I cannot vouch for it entirely, as the number of weekly deposits in 15 years will actually be 782.

_____

Computing this by hand doing the initial balance separately from the weekly deposits, I get a total of $46,252.10 using 782 weekly deposits. For that purpose, I tried to figure an equivalent weekly interest rate given monthly compounding and the fact there are 52 5/28 weeks in a year on average.

I suspect the only way to get this to the cent would be to build a spreadsheet with payment dates and interest computation/payment dates. Some months, there would be 5 deposits between interest computations; some years there would be 53 deposits.