Claude made annual deposits of $5900 at the beginning of every one-year period into a fund...

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?

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.)

Solutions

Expert Solution

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

jeff jeffy answered 1 year ago

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