If an investor invests $2000 on January 1st, every year guarantees him 4% per annum. If the interest is calculated on December 31st, how much will the account be at the end of the 10th year?

Correct answer:

x =  24972.7028 USD

Step-by-step explanation:

a=2000 USD q=100%+4%=1+1004=1.04 t=10  x1=a q=2000 1.04=2080 x2=(x1+a) q=(2080+2000) 1.04=521216=4243.2 x3=(x2+a) q=(4243.2+2000) 1.04=6492.928 x4=(x3+a) q=(6492.928+2000) 1.048832.6451 x5=(x4+a) q=(8832.6451+2000) 1.0411265.9509 x6=(x5+a) q=(11265.9509+2000) 1.0413796.589 x7=(x6+a) q=(13796.589+2000) 1.0416428.4525 x8=(x7+a) q=(16428.4525+2000) 1.0419165.5906 x9=(x8+a) q=(19165.5906+2000) 1.0422012.2142 x10=(x9+a) q=(22012.2142+2000) 1.0424972.7028  x=x10=24972.7028=24972.7028 USD

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Showing 1 comment:
In this question, they are asking how much will be in the account at the end of the 10th year which means we have to find the sum and not the tenth member of the series.

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