Question

13. Use the appropriate percent growth todetermine how much money Lyra will have incach ofthe following situations:(a) How much money will Lyra have after 10years if she invests $5,000 at 4% interestcom-poundcl annually?(1) Suppose that Lyra is saving for retirement,and has saved up $20,000. If her retirementaccount earns 3% interest each year, howmuch will she save in 25 years?(o) How much mowy will yra have after 20years if she $5,000 33.5% interestcompoundedannully?(d) How much money will yr hawwur 10 yearsit she is $6,000 AL 15% interestcompounded quarterly?(E) how much money will lyra have after 10years if she invests $5,000 at 0.8% interestcompounded continuously?(F) compare your answer to (a) and (c). Whichone made more money?

Answer 1

Given:

(a) P = $5000

t = 10 years

r = 4%

(b) P = $20,000

t = 25 years

r = 3%

(c) P = $5000

t = 20 years

r = 3.5%

(d) P = $5000

t = 10 years

r = 1.5%

(e) P = $5000

t = 10 years

r = 0.8%

(f) Compare the result of (a) and (c).

Required:

(a) Find the amount when interest is compound annually.

(b) To find the total amount after 25 years.

(c) Find the amount when interest is compound annually.

(d) Find the amount when interest is compound quarterly.

(e) Find the amount when interest is compound continuously.

Step-by-step explanation:

The compound interest formula is given as:

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

Where p =principal amount

r = rate of interest

n = compound frequency

t = time period in years

(a)