Question

Question 15 O Mark this question Suppose an account pays 6% interest that is compounded annually. At the beginning of each year, $2,000 is deposited into the account (starting with $2,000 for the first year) What is the value of the account after the tenth deposit if no withdrawals or additional deposits are made? 0 $21,200.00 O $26,361.59 O $23,581.70 O $35,816.95

Answer 1

Solution € Ginen that Account pays 6% interest $2000 is deposited into account per year. Simple interest for Dne year Principal & Rate & Time 100 Thus SiI = 2000 X 6X1 100 = 20x681 = $120 Thus for 16th deposit value of account will be 120X10 =$1200 Hence total amount for After 10th deposite will be $2000 2000+1200 Answer $3200

Solution S. I (simple Intereast) for one year will be siI = principal & Rate & Time 100 1500d X 6.5 X/ 168 - 150 X 6.5 X / Thus =$975 for five year interest will be $975XS -$4875 Thus total Amount will be after five will be year primer pul + Interest (5 year) $15000+$4875 $19.875.00 yth is correct Ausuar This option