if you put $4000 in savings account that pays interest rate of 4%, compounded annually, how much will you have in 5 years? How much interest will you earn during the 5 years? If you put $4000 each year into a savings account that pays interest at the rate of 4% a year, how much would you have after 5 years?

Question

if you put $4000 in savings account that pays interest rate of 4%, compounded annually, how much will you have in 5 years? How much interest will you earn during the 5 years? If you put $4000 each year into a savings account that pays interest at the rate of 4% a year, how much would you have after 5 years?

Answer 1

1. If you put $4000 in savings account that pays interest rate of 4%, compounded annually, how much will you have in 5 years? How much interest will you earn during the 5 years?

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2. If you put $4000 each year into a savings account that pays interest at the rate of 4% a year, how much would you have after 5 years?

How will you alter what you did for #1 in order to answer #2?

Answer 2

1. P = Po*(1+r)^n

Po = $4,000.

r = (4%/100%) = 0.04

n = 1Comp./yr * 5yrs = 5 Compounding
periods.
Plug the above values into the given Eq and get: P = $4,866.61.

2. P = Po(1+(y-1))*(1+r)^n

Y = Length of loan = 5 years.
P = 4000(1+4)*(1.04)^5 = $24,333.06

Answer 3

To calculate how much you will have in the savings account after 5 years with an interest rate of 4%, compounded annually, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years

Let's calculate it based on the given information:

1. For the initial investment of $4000:
P = $4000
r = 0.04 (4% expressed as a decimal)
n = 1 (compounded annually)
t = 5 (years)

A = 4000(1 + 0.04/1)^(1*5)
A = 4000(1.04)^5
A ≈ $4830.11

Therefore, after 5 years, you will have approximately $4830.11 in the savings account.

To calculate the interest earned during the 5 years, subtract the initial investment from the final amount:

Interest = A - P
Interest = $4830.11 - $4000
Interest ≈ $830.11

You will earn approximately $830.11 in interest during the 5 years.

2. If you deposit $4000 each year into the same savings account with an interest rate of 4% compounded annually, you can use the formula for future value of a series of deposits:

A = P((1 + r)^t - 1)/r

Where:
A = the future value of the investment
P = the deposit amount
r = the annual interest rate (as a decimal)
t = the number of years

Let's calculate it based on the given information:

P = $4000
r = 0.04 (4% expressed as a decimal)
t = 5 (years)

A = 4000((1 + 0.04)^5 - 1)/0.04
A ≈ $23092.61

Therefore, after 5 years of depositing $4000 each year, you will have approximately $23092.61 in the savings account.

1. If you put $4000 in savings account that pays interest rate of 4%, compounded annually, how much will you have in 5 years? How much interest will you earn during the 5 years?

1. P = Po*(1+r)^n

R

To calculate how much you will have in the savings account after 5 years with an interest rate of 4%, compounded annually, you can use the formula for compound interest: