On January 1, 2016, you deposited $5,800 in a savings account. The account will

Question

On January 1, 2016, you deposited $5,800 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 Required: 1. What will be the balance in the savings account at the end of 4 years? (Future Value of S1, Present Value of $1, Fhure Value Annuity of S1. Present Value Anuity of S1.) (Use appropriate factorís) from the tables provided. Round your final answers to 2 decimal places.) 2. What is the total interest for the 4 years? Enr final answers to 2 decimal places.) tve o $1. Present bl o $1. Futuresahm mityof 1. Present ahm nnuits. 1.) (Use appropriate factor(s) from the tables provided. Round your How much interest revenue did the fund eam in 2018 and in 2017? (Round your final answers to 2 decimal places. 2016 Interest Revenue 2017 Interest Revee

Explanation / Answer

1. balance in saving account at end of 4 years = p( 1+r)t

= 5800 ( 1+0.09)4

= 5800* 1.41158

= $ 8187.18

2. total interest = amount after 4 years - principal amount

= 8187.18 - 5800

= $ 2387.18

3.

  

2016 interest revenue 5800*9% $ 522 2017 interest revenue (5800+522)*9% $ 568.98

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