What launch song must a deposit at a 10% annually interest rate compounded annually in order to have $60,000 in the fund at the end of 10 ye

Question

What launch song must a deposit at a 10% annually interest rate compounded annually in order to have $60,000 in the fund at the end of 10 years

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Genesis 2 weeks 2021-09-08T16:09:50+00:00 2 Answers 0

Answers ( )

    0
    2021-09-08T16:11:26+00:00

    Answer:

    Step-by-step explanation:

    Deposit=?

    Given that

    Annual rate is 10% =0.1

    r=0.1

    Amount A=$60,000

    t=10years

    The formula for compound interest, including principal sum, 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 unit

    n=12months

    t = the time the money is invested or borrowed.

    So,

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

    60,000=P(1+0.1/12)^(12×10)

    60,000=P(1+0.008333)^120

    60,000=P(1.008333)^120

    60,000=P× 2.707

    Then, P=60,000/2.707

    P=$22,164.418

    So, he should have deposit $22,164.418 to yield an amount of $60,000 in ten years time at a rate of 10% compounded annually

    0
    2021-09-08T16:11:28+00:00

    Answer: $23133 must be deposited.

    Step-by-step explanation:

    We would apply the formula for determining compound interest which is expressed as

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

    Where

    A = total amount in the account at the end of t years

    r represents the interest rate.

    n represents the periodic interval at which it was compounded.

    P represents the principal or initial amount deposited

    From the information given,

    A = $60000

    r = 10% = 10/100 = 0.1

    n = 1 because it was compounded once in a year.

    t = 10 years

    Therefore,.

    60000 = P(1 + 0.1/1)^1 × 10

    60000 = P(1.1)^10

    60000 = 2.5937P

    P = 60000/2.5937

    P = $23133

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