Need business and finance help with a deposit into a growth mutual fund that earns 11% per year

timer Asked: Nov 29th, 2015
account_balance_wallet $5

Question Description

If you deposit a total $13,700 in a 5 year period into a growth mutual fund that earns 11% per year, how much should the fund be worth at the end of 5 years. And how much interest have you earned in total?

Tutor Answer

School: UIUC

Thank you for the opportunity to help you with your question!

Each year deposit= 13700/5=2740.

So in year 1. 2740+2740*.11=P1

In year 2: (P1+2740)+(P1+2740)*.11=P2

In year 3: (P2+2740)+(P2+2740)*.11=P3

In year 4: (P3+2740)+(P3+2740)*.11=P4

In Year 5: (P4+2720)+(P4+2720)*.11=P5

P5 is the total amount.

Interest is: 2740*.11+(P1+2740)*.11+(P2+2740)*.11+(P3+2740)*.11+(P4+2740)*.11

Please let me know if you need any clarification. I'm always happy to answer your questions.

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Top quality work from this guy! I'll be back!

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