Your grandparents deposit $1,000 each year on your birthday, starting the day you are born, in an account that pays 6% interest compounded annually. How much will you have in the account on your 30th birthday, just after your grandparents make their deposit.
since its just after they deposit 1,000 then you multiply 29,000 x .06 = 1740. then add that to 30000 because they just deposited the 1,000. then you get $31,740
Suppose $500 is invested monthly at 4% compounded monthly, for
10 years, then $600 is invested monthly at 6% compounded monthly, for
10 years.
Find the future value of the ordinary annuity with payout of $20,000
at 4.5% interest compounded annually for 12 years.
Suppose $500 is invested monthly at 4% compounded monthly, for
10 years, then $600 is invested monthly at 6% compounded monthly, for
10 years.
To find out how much you will have in the account on your 30th birthday, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount in the account
P = the initial deposit
r = the interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years
In this case:
P = $1,000 (the yearly deposit)
r = 6% = 0.06 (interest rate in decimal form)
n = 1 (compounded annually)
t = 30 (number of years)
So, the formula becomes:
A = $1,000(1 + 0.06/1)^(1*30)
Simplifying the equation:
A = $1,000(1.06)^30
Calculating the value inside parentheses:
A = $1,000(1.06)^30
A = $1,000(2.085864)
Calculating the final amount:
A ≈ $2,085.86
Therefore, you will have approximately $2,085.86 in the account on your 30th birthday, just after your grandparents make their deposit.