Answer: The answer is as follows:
Explanation:
Given that,
Deposits = $1000
Interest rate = 4%
(a) Compound interest = principal × [tex](1 + \frac{R}{100})^{n}[/tex]
= 1000 × [tex](1 + \frac{4}{100})^{1}[/tex]
= $1040
Therefore, interest earned in the first year is $40.
(b) Compound interest = principal × [tex](1 + \frac{R}{100})^{n}[/tex]
= 1000 × [tex](1 + \frac{4}{100})^{2}[/tex]
= $1081.6
Therefore, interest earned in the second year is $41.6.
(c) Compound interest = principal × [tex](1 + \frac{R}{100})^{n}[/tex]
= 1000 × [tex](1 + \frac{4}{100})^{10}[/tex]
= $1,480.244
Above is the interest earned in the tenth year.
