mohammedisadaf0098
Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Annabella wants to make the most economical decision so she chose the 3-year car loan so that after the loan is paid off to be able to invest in a structured saving account if Anabella put $200 into a saving account each month with an annual interest rate of 3.2% interest compounded monthly how much money would she have in her account after 2 years ​

Sagot :

mhanifa

Answer:

  • Annabella will save $4950.11 after 2 years.

Step-by-step explanation:

Given

  • Periodic payment P = $200,
  • Period t = 2 years,
  • Number of compounds, monthly n = 12,
  • Interest rate, r = 3.2% = 0.032.

To find

  • Future value of saving, F

Solution

Use periodic compound formula:

[tex]F=P\cfrac{(1+r/n)^{nt}-1}{r/n}[/tex]

Substitute the values and calculate:

[tex]F=200\cfrac{(1+0.032/12)^{12*2}-1}{0.032/12} =4950.12[/tex]     rounded

LazyKingHacker

Step-by-step explanation:

Given

  • P = $200,
  • t = 2 years,
  • n = 12,
  • [tex] \sf \: r = 3.2\% = \frac{3.2}{100} = 0.032[/tex]

To find

  • Future value of saving

Solution

Use periodic compound formula:

[tex] \sf \: F=P\cfrac{(1+ \frac{r}{n})^{nt}-1}{\frac{r}{n}}[/tex]

Substitute the values and calculate:

[tex]\sf \: F=200\cfrac{(1+ \frac{0.032}{12})^{12 \times 2}-1}{\frac{0.032}{12}}[/tex]

[tex]\sf \: F=200\cfrac{( \frac{ 12 + 0.032}{12})^{24}-1}{\frac{0.032}{12}}[/tex]

[tex]\sf \: F=200\cfrac{( {11.002 }{})^{24}-1}{0.002} [/tex]

[tex]\sf \: F=200 \times 24.7506[/tex]

[tex]\sf \: F=4950.12rounded[/tex]

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.