Question

you decided to get a summer job since you were 14 as a lifeguard. you have made 2000 each summer. you placed all your earning in your savings account each year. It's 5 years later and you want to determine how much interest you have made. use the calculator to determine this

Answer 1

Determine of interest made by placing $2,000 earnings each summer in savings account each year:

Total Interest $1,265.95

at 4% interest per annum.

Step-by-step explanation:

a) Data and Calculations:

1. Data:

Earnings each summer = $2,000

Period = 5 years

Interest Rate = 4%

2. Using online calculator:

V (Future Value) $11,265.95

PV (Present Value) $9,259.79

N (Number of Periods) 5.000

I/Y (Interest Rate) 4.000%

PMT (Periodic Payment) $2,000.00

Starting Investment $0.00

Total Principal $10,000.00

Total Interest $1,265.95

3. By placing all your earning in your savings account each year after 5 years, you will get an interest of $1,265.95 and a total future value of $11,265.95, having deposited $10,000 ($2,000 each for 5 years).