Answer:
The explicit formula that can be used is 
The account's balance at the beginning of year 3 is 
Step-by-step explanation:
we know that
The compound interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
substitute in the formula above
Answer:
FV= $95,454.20
Step-by-step explanation:
Giving the following information:
Annual deposit= $2,000
Number of periods= 25 years
Interest rate= 5% compounded annually
<u>To calculate the future value of the annual deposits, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.05^25) - 1]} / 0.05
FV= $95,454.20
Answer:
x= -7
Step-by-step explanation:
A = P*r*t
A = overall value
P = principal (initial value)
r = annual interest
t = time (in years)
Plug in what we have:
4000 = 2000*r*8
Simplify:
0.25 = r
The annual interest is 25%
