On January 1, 2009, you deposited $5,600 in a savings account. The account will

Question

On January 1, 2009, you deposited $5,600 in a savings account. The account will earn 9 percent annual compound interest, which will be added to the fund balance at the end of each year. (Use Table 1.) Requirement 1: What will be the balance in the savings account at the end of 4 years? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.) Balance in the savings account $ Requirement 2: What is the total interest for the 4 years? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.) Total interest $ Requirement 3: How much interest revenue did the fund earn in 2009 and in 2010? (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) 2009 Interest revenue $ 2010 Interest revenue $

Explanation / Answer

1) 5600 (1.09)^4 = $ 7905 2) Interest = 7905-5600 = $ 2305 3)in 2009 interest = 5600(1.09) -5600 =$ 504 in 2010 interest = 5600(1.09)^2 - 5600 -504 = $549

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