.
(a) Use the formula
FV = D*(1+r*t),
where D is the one time deposit value (starting amount); r is the annual interest rate expressed as decimal;
t is time in years:
FV = 4000*(1+0.045*10) = 5800 dollars. ANSWER
(b) Use the formula
FV = ,
where D is the one time deposit value (starting amount); r is the annual interest rate, expressed as decimal;
n is the number of years:
FV = = 6257.50 dollars. ANSWER
Solved.
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