Question

To what amount will the following investments​ accumulate? a. ​$5,000 invested for 10 years at 10 percent compounded annually. b. ​$8,200 invested for 7 years at 8 percent compounded annually. c. ​$765 invested for 12 years at 12 percent compounded annually. d. ​$22,000 invested for 4 years at 4 percent compounded annually.

Answer 1

Answer: The answer is as follows:

Explanation:

Option (a) :

Amount = principal × $(1+r)^{n}$

= 5000× $(1+0.1)^{10}$

=$12968.71

∴ This investment will accumulate till $12968.71.

Option (b) :

Amount = principal × $(1+r)^{n}$

= 8200× $(1+0.08)^{7}$

=$14053.35

∴ This investment will accumulate till $14053.35.

Option (c) :

Amount = principal × $(1+r)^{n}$

= 765× $(1+0.12)^{12}$

=$2980.42

∴ This investment will accumulate till $2980.42.

Option (d) :

Amount = principal × $(1+r)^{n}$

= 22000 × $(1+0.04)^{4}$

=$25736.88

∴ This investment will accumulate till $25736.88.