Answer:
The annual interest rate is 12.05%.
Step-by-step explanation:
The simple interest is given by the formula:
Where I denotes interest.
P denotes the principal amount.
R denotes the rate of interest
and T denotes the time period.
I=$160.67, P=$2000, t=8 months=8/12 years (Since 12 months=1 year so 1 month=1/12 year)
Hence, the annual interest rate is 12.05%.
We have been given that miss Roxanne is 25 years old and she puts 1800 dollars per quarter that returns 6% interest.
(a) We need to figure out how much will be in the account when she turns 65 years old. When she turns 65 years old, the number of years during which she made deposits would be 40. Since she made quarterly deposits. She made a total of 160 deposits. We can now figure out the final amount in the account using future value of annuity formula.
We have the values P=1800, r=6/4% = 1.5% = 0.015 and n=160.
Therefore, the amount in the account would be:
Therefore, miss Roxanne will be 1179415.39 dollars in her account when she turns 65 years old.
(b) In this part we need to figure out the total amount she deposited.
The total amount she deposited would be .
(c) We can find the interest earned by subtracting her contribution from the answer of part (a).
Interest earned =
Answer:
Step-by-step explanation:
see the attached figure to better understand the problem
we know that
----> by angle addition postulate
substitute the given values
