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Safari File Edit View History Bookmarks Window Help ezto.mheducatic Question 5 (of 5) 5. EC-1 Computing Growth from a Single Amount On January 1, you deposited $6,400 in an investment account. The account will eam & percent annual compound interest, which will be added to the fund balance at the end of each year factor(s) from the tables provided.) Required: Value of S ise appropriate 1. What will be the balance in the account at the end of 10 years? (Round your final answer to the nearest whole dollar amount.) Table or Calulator Function Present Value: Future Value: 2. What is the interest for the 10 years? (Round your final answer to the nearest whole dollar amount.)

Explanation / Answer

1.

2. Total interest earned= Future value - present value= 11846- 6400= 5446

3. Interest in first year= 6440 * 8%= 512

Fund balance after 1 year= 6440+512= 6912

Interest for 2nd year= 6912*8%= 553

Table or function Future value of 1 Present value 6400 n= 10 i= 8% Future value 11,846

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