SOLUTION: If you put $ 6,000 in a savings account that pays interest at the rate of 4 percent, compounded annually, how much will you have in five years? ( Hint: Use the future value formula

Question 872166: If you put $ 6,000 in a savings account that pays interest at the rate of 4 percent, compounded annually, how much will you have in five years? ( Hint: Use the future value formula.) How much interest will you earn during the five years? If you put $ 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
If you put $ 6,000 in a savings account that pays interest at the rate of 4 percent, compounded annually, how much will you have in five years?
A(5) = 6000(1+0.04)^(5)
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A(5) = 6000*1.04^5 = $7299.92
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How much interest will you earn during the five years?
Ans:: Interest = 7299.92-6000 = $3299.92
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Cheers,
Stan H.
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