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You plan to deposit $5,300 at the end of each of the next 20 years into an account paying 10.8 percent interest. a. How much money will you have in the account in 40 years

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jayilych4real

The amount of money in the account in 40 years is $28, 196

Calculations and Parameters

Equation:

I = Prt

First, converting R percent to r a decimal

r = R/100 = 10.8%/100 = 0.108 per year,

then, solving our equation

I = 5300 × 0.108 × 20 = 11448

I = $ 11,448.00

Therefore, this is the interest gained after 20 years.

To get the interest for an additional 20 years, we would multiply by 2

11,448 * 2

= $ 22,896.00

Therefore, the total money gained after this period would be:

$22,896 + $5,300

= $28, 196

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