Question

Determine the amount of money in a savings account at the end of 1 year, given an initial deposit of $4,500 and a 12 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

Answer 1

Int .. Initial deposit (1+r)^ Given Initial deposit 2$4500 Annacel Interest rately) 2 izb. Amount savings account. Initial de : number of compounds in the year If interest is compounded Annually then Amount = 4500(1+124)': $ 5040. . Amount in savings account iss504o, it the interest is compounded annually. If the interest compounded semiannually Then Amount:4500(1+12;))2 :: 450011.06)? 4500x(1.1236) ::$ 505 6:2 Amount in savings are coun 1$ 5056:2 If the interest is compounded quarterly, Then Amount 24500 (1+127,34 -4500 (1.0334 =4500(1:12550881) -$5064.7896 Amount in savings account: $5064.79.