On January 1, 2016, you deposited $5,600 in a savings account. The account will
ID: 2583651 • Letter: O
Question
On January 1, 2016, you deposited $5,600 in a savings account. The account will earn 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 5 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.) Balance in the Savings Account 2. What is the total interest for the 5 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.) Total Interest your final answers to 2 decimal places.) 2016 Interest Revenue 2017 Interest RevenueExplanation / Answer
Balance in the saving Account is Future value of Present Cash Flow
Balance in the saving =5600*(1+.10)^5=9018.86
Total Interest for the Five Year
=9018.86-5600=3418.86
How Much Interest Earned
2016=5600*.10=$560.00
2017=(5600+560)*.10=$616.00