You have $380,000

inyour bank account. The interest rate in your account is5%. Solve

for the following:

a. How muchinterest

will you accumulate if interest is compounded annually over the

next five years?

Question

Dominique Joyce

Mathematics

24 September, 14:35

You have $380,000

inyour bank account. The interest rate in your account is5%. Solve

for the following:

a. How muchinterest

will you accumulate if interest is compounded annually over the

next five years?

+1

Answers (1)

Know the Answer?

Nikolas Terrell · Answer 1

If the capitalization method is continuous, the interest obtained will be $104986.99

Step-by-step explanation:

Cn = Co * (1 + i) ^n

Co = 380,000

i = 0.05

n = 5

So:

Cn = 380,000 * (1+.05/1) ^ (1*5)

Cn = 380,000 * (1+.05) ^5

Cn = 380,000 * (105) ^5

Cn = 380,000 * (1.2763)

Cn = 484,986.99

Cn - Co = interest acumulated:

484,986.99-380,000 = $104986.99

You have $380,000inyour bank account. The interest rate in your account is5%. Solvefor the following:a. How muchinterestwill you accumulate if interest is compounded annually over thenext five years?

You have $380,000

inyour bank account. The interest rate in your account is5%. Solve

for the following:

a. How muchinterest

will you accumulate if interest is compounded annually over the

next five years?