Question

Claude made annual deposits of $5900 at the beginning of every one-year period into a fund earning 3.1​% compounded annually for eight years. No further deposits were made.​(a) How much will be in the account seventeen years after the first​ deposit?

​(b) How much in total was​ deposited?

​(c) How much interest will have been​ earned?

​a) The balance in the account seventeen years after the first deposit will be $____.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

​b) The amount deposited was ​$____ in total.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

​c) Claude will have earned ​$____ in interest.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

Answer 1

Note: In this question, there is a typing error, subparts a, b, and c are repeated twice.

Claude made annual deposits of $5900 at the beginning of every year and earns an annual earning of 3.1 % compounded annually for 8 years.

a.) first calculating the amount that will be in the account at the end of 8 year

So at the end of 8-year amount in the account will be $54,283.519153

So now after 8 years no more amount will be deposited only this amount will be compounded for next 9 years

So Final amount at the end of 17 years will be $71,448.971637

That is $71,448.97

b.) Total deposited is $5900 for 8 years. That is

Total deposited is $47200

c.) Total interest earned will be calculated as = Final Amount - Deposited amount

Interest earned = $71,448.97 - $47,200 = $24,248.97

So final answers of a, b and c is

a. $71,448.97 that is $71448 and 97 cents

b. $47200 that is $47200 and 0 cents

c. $24248.97 that is $24248.97 and 97 cents