Question

I REALLY NEED HELP!

What is the future value of the 10% savings from earnings of $1,470 if it earns 3.5% annual interest,


compounded monthly for 25 years?


Use the compound interest formula to estimate the future value.


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


A.

$295.72


B.

$352.19


C.

$419.43


D.

$523.89


What is the future value of the 10% savings from earnings of $36,000 if it earns 6.25% annual interest, compounded quarterly for 15 years?


Use the compound interest formula to estimate the future value.


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


A.

$912.65


B.

$9,126.53


C.

$1,825.31


D.

$18,253.31


Justin contributes $208 each month to a savings account that earns 5% annual interest. Calculate his annuity savings over the course of 25 years.


Use

S = P ((1+r^n)-1/r)


A.

$9.927.23


B.

$65,520.00


C.

$62,660.00


D.

$123,866.02

Answer 1

B. $352.12

B. $9,126.53

D. $123,866.02

Explanation:

Hope this helps! Have an awesome day/night!

Answer 2

B

Explanation:

The compound interest formula is
`A = P (1+r/n)^nt` where:

• P is the starting amount called the principle
• r is the rat written as a decimal
• n is the number of times compounded in a year
• t is the number of years

Substitute a value into each variable to solve.

• P = $147 since 10% of 1,470 is being invested which makes P = 0.10(1470) = 147.

• The rate is 3.5% or r = 0.035.
• n = 12 because it is compounded monthly meaning 12 times a year.
• t = 25 since it will earn for 25 years.

`A = P (1+r/n)^(nt)\\A = 147(1 + (0.035)/(12))^(12*25)\\A = 147 ( 1 + 0.002916)^(300)\\A = 147(1.002916)^(300)\\A = 352.19`

Repeat this process for each formula.