79.6k views
2 votes
What is the total amount payable at the end of the seventh, eighth, ninth, and tenth periods for a sum of $52,460 invested at an 11% interest rate?

a) $70,413.18
b) $78,437.43
c) $87,150.47
d) $96,836.83

User Pdfman
by
8.1k points

1 Answer

3 votes

Final answer:

To calculate the total amount payable at the end of multiple periods for an investment with compound interest, use the formula: Total Amount Payable = Principal × (1 + Interest Rate)^Number of Periods. For the given investment of $52,460 at an 11% interest rate, the correct option is (d) $96,836.83.

Step-by-step explanation:

To calculate the total amount payable at the end of multiple periods, we can use the formula:

Total Amount Payable = Principal × (1 + Interest Rate)Number of Periods

Using this formula, for the given sum of $52,460 invested at an 11% interest rate, we can calculate:

Total Amount Payable at the end of the 7th period = $52,460 × (1 + 0.11)7 = $78,437.43

Total Amount Payable at the end of the 8th period = $52,460 × (1 + 0.11)8 = $87,150.47

Total Amount Payable at the end of the 9th period = $52,460 × (1 + 0.11)9 = $96,836.83

Total Amount Payable at the end of the 10th period = $52,460 × (1 + 0.11)10 = $107,704.77

Therefore, the correct option is (d) $96,836.83

User Stormwild
by
8.4k points