On January 1, 2016, you deposited $5,100 in a savings account. The account will
ID: 2524068 • Letter: O
Question
On January 1, 2016, you deposited $5,100 in a savings account. The account will eam 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required 1. What will be the balance in the savings account at the end of 9 years? (Future Value of $1, Present Value of $1 Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answers to 2 decimal places.) in the Savings Account 2. What is the total interest for the 9 years? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answers to 2 decimal places.) tal Interest 3. How much interest revenue did the fund earn in 2016 and in 2017? (Round your final answers to 2 decimal places.) 2016 Interest Revenue 2017 Interest RevenueExplanation / Answer
Answer for 1)
Balance in savings account at the end of 9 years:
Amount at end of nth year=
principal (1+rate of interest/100)^time duration
Amount at the end of 9th year:
$5100(1+(10/100))^9=$12025.53
Answer for 2)
Total interest for the 9 years:
Balance at the end of 9 years-amount deposited
=$12025.53-$5100=$6925.53
Answer for three:
Interest revenue for 2016:$5100×10%=$510
Interest revenue for 2017=($5100+$510)×10%=$561