Final answer:
Angel would have approximately $552.05 at the end of 5 years with the bank. The annual depreciation rate of the phone is approximately 18.85%.
Step-by-step explanation:
To calculate the amount of money Angel would have at the end of 5 years with the bank, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount
- P is the principal amount (initial deposit)
- r is the annual interest rate (as a decimal)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, the principal (P) is $520, the interest rate (r) is 1.2% or 0.012 as a decimal, the number of times compounded (n) is 4 (quarterly), and the number of years (t) is 5. Plugging these values into the formula:
A = $520(1 + 0.012/4)⁽⁴*⁵⁾ = $520(1.003)²⁰
By evaluating this expression, Angel would have approximately $552.05 at the end of 5 years with the bank.
To calculate the annual depreciation rate of the phone, we can use the formula:
Depreciation Rate = (Initial Value - Final Value) / (Initial Value) / (Number of Years)
In this case, the initial value of the phone is $520 and the final value is $30 after 5 years. Plugging these values into the formula:
Depreciation Rate = ($520 - $30) / $520 / 5 = $490 / $520 / 5
By evaluating this expression, the annual depreciation rate of the phone is approximately 18.85%.