Chegg Study I Guided Solutio ExarmSChingg Study I Gudeox ewinnebagel Corp Cunent

Question

Chegg Study I Guided Solutio ExarmSChingg Study I Gudeox ewinnebagel Corp Cunentysx × .ztomheducation com.h m.tpx The True Story ot Paca ost Visited Getting Started My usc Aken-Black connect. 1363 Busi Exam #5 Save & Exd t count Assuming you eam a rate of retum of S perceri and make no addition con ributions what wil your account be worth whies you retire in 35 years? what it you wat for 5 years before O $26,335.37, $2301 60 O $27311 20, $29,803 04 O $2731 20, $22614.08 O $275800s, $2160971 O $3124190, $32,614 08

Explanation / Answer

answer is option C.

We know that formula for Annual compound intrest rate is

A = P (1 + r/n) (nt)

Where:

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for

If principal is $5000 rate of intrest is 5% and time is 35 years then Amount A=

5000* {1+(0.05/1)1*35} =$27580.08

If principal is $5000 rate of intrest is 5% and time is 30 years then Amount A=

5000* {1+(0.05/1)1*30} = $21609.71

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