Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
Sagot :
To solve this problem, we must use the Compound Interest formula:
[tex]P_N=P_0\cdot(1+\frac{r}{k})^{N\cdot k}.[/tex]Where:
• P_N is the balance in the account after N years,
,• P_0 is the starting balance of the account (also called an initial deposit, or principal),
,• r is the annual interest rate in decimal form,
,• k is the number of compounding periods in one year.
In this problem, we have:
• P_0 = 24,000,
,• r = 6% = 0.06%,
,• k = 1 (because the interest compounded annually),
,• N = 14.
Replacing the data in the equation above, we get:
[tex]P_{14}=24,000\cdot(1+0.06)^{14}\cong54,261.6944\cong54,262.[/tex]Answer
The amount to be paid at the end of the 14 years will be $54,262.
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.
