Respuesta :
Answer:
Therefore the amount in the bank after 14 years is $15826.33 (approx).
Explanation:
Compound interest: The amount of the principal is not same all year.
The principal of first year = The initial amount principal
Second year principal = Principal+ interest of first year
Third year principal = The principal of second year + interest of second year.
and so on....
The amount [tex](A)= P(1+r)^n[/tex]
Here principal = $7000
r = rate of interest = 6% = 0.06
n = Time = 14 year
Amount = [tex]\$[ 7000(1+0.06)^{14}][/tex]
=$ 15826.33 (approx)
Therefore the amount in the bank after 14 years is $15826.33 (approx)
Answer:
The amount which the bank will pay after 14 years amounts to $15,826.33
Explanation:
The amount which is to be paid after 14 years is known as Future Value (FV), which is computed as:
Using the Excel formula of FV as:
=FV(rate,nper,pmt,pv,type)
where
rate is 6%
nper is number of years which is 14 years
PMT is monthly payment which is $0
PV is Present value which is -$7,000
Putting the values above:
=FV(6%,14,0,-7000,0)
= $15,826.33
Therefore, the future value which is to be paid after 14 years amounts to $15,826.33
