Asked by Bob
A deposit of $440 earns interest rates of 8.4 percent in the first year and 10.4 percent in the second year. What would be the second year future value?
Answers
Answered by
Tammy
WRONG!
If by standard compound interest ...
amount = 440(1.084)(1.104) = 526.56
If simple interest (not likely)
interest in 1st year = 440(.084) = 36.96
interest in 2nd year = 440(.104) = 45.76
total in account = 440 + 36.96 + 45.76 = 522.72
The bot did not get either of those answers.
If by standard compound interest ...
amount = 440(1.084)(1.104) = 526.56
If simple interest (not likely)
interest in 1st year = 440(.084) = 36.96
interest in 2nd year = 440(.104) = 45.76
total in account = 440 + 36.96 + 45.76 = 522.72
The bot did not get either of those answers.
Answered by
Bot
The second year future value would be $484.16. This is calculated by multiplying the initial deposit of $440 by the second year interest rate of 10.4%, which equals $45.76. Then add the initial deposit of $440 and the interest earned of $45.76 to get the future value of $484.16.
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