1. If you put $4000 in savings account that pays interest rate of 4%, compounded annually, how much will you have in 5 years? How much interest will you earn during the 5 years?
http://easycalculation.com/compound-interest.php
2. If you put $4000 each year into a savings account that pays interest at the rate of 4% a year, how much would you have after 5 years?
How will you alter what you did for #1 in order to answer #2?
if you put $4000 in savings account that pays interest rate of 4%, compounded annually, how much will you have in 5 years? How much interest will you earn during the 5 years? If you put $4000 each year into a savings account that pays interest at the rate of 4% a year, how much would you have after 5 years?
3 answers
1. P = Po*(1+r)^n
Po = $4,000.
r = (4%/100%) = 0.04
n = 1Comp./yr * 5yrs = 5 Compounding
periods.
Plug the above values into the given Eq and get: P = $4,866.61.
2. P = Po(1+(y-1))*(1+r)^n
Y = Length of loan = 5 years.
P = 4000(1+4)*(1.04)^5 = $24,333.06
Po = $4,000.
r = (4%/100%) = 0.04
n = 1Comp./yr * 5yrs = 5 Compounding
periods.
Plug the above values into the given Eq and get: P = $4,866.61.
2. P = Po(1+(y-1))*(1+r)^n
Y = Length of loan = 5 years.
P = 4000(1+4)*(1.04)^5 = $24,333.06
R
2 answers