introduction to Finance

User Generated

obxunzf5

Business Finance

Description

You deposit $1,900 at the end of each year into an account paying 10.1 percent interest.

1) How much money will you have in the account in 24 years?

2) How much will you have if you make deposits for 48 years?

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Explanation & Answer

Check out this website http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php 

Entering Base amount: 0 , annual interest rate: 10.1% , calculation period: 24 years , regular monthly: $158.33 (1900/12) , compound interval: yearly

1) $179,775.82 

2) Changing calculation period to 48 years we get $1,989,339.23


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