Question

10. Ryan inherited land from his grandfather. He decided to sell the land for $160,000, then place

the money in a new account that earns 1. 2% interest compounded bimonthly. How much

interest will he have earned after 30 years?

Answer 1

The amount of interest Ryan would earn at the end of 30 years given the interest rate is $69,250.27.

What is the interest rate on the new account?

When an account earns an interest that is compounded bimonthly, it means that it earns an interest every 2 months.

The formula that can be used to determine the interest earned is:

Future value - amount deposited

FV = P (1 + r)^nm

• FV = Future value
• P = Present value
• R = interest rate = 1.2/6
• m = number of compounding
• N = number of years

FV = 160,000(1.002^180) = $229,250.27

Interest = $229,250.27 -  $160,000 = $69,250.27

To learn more about future value, please check: https://brainly.com/question/18760477