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11 March, 16:48

Now, assume that Addison's savings institution modifies the terms of her account and agrees to pay 5.8% in compound interest on her $1,000 balance. All other things being equal, how much money will Addison have in her account in nine years?

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  1. 11 March, 17:04
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    Addison will have $ 1,661 in her account in nine years.

    Explanation:

    This problem requires us to calculate value of our investment of $ 1000 dollars after nine years. The interest on the investment is 5.8% compounded annually.

    This problem can be solved by using simple compounding formula given below.

    Future Value = Present Value (1+interest rate%) ^-period

    Future Value = 1,000 (1+5.8) ^9

    Future = $ 1,661
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Home » Business » Now, assume that Addison's savings institution modifies the terms of her account and agrees to pay 5.8% in compound interest on her $1,000 balance. All other things being equal, how much money will Addison have in her account in nine years?
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