Investment

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



Did you find an error or inaccuracy? Feel free to write us. Thank you!



Showing 1 comment:
Zak
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.





Tips for related online calculators
Our percentage calculator will help you quickly calculate various typical tasks with percentages.
Do you want to convert time units like minutes to seconds?

You need to know the following knowledge to solve this word math problem:

Units of physical quantities:

Themes, topics:

Grade of the word problem:

Related math problems and questions: