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GRADE 11 MATH

PLEASE HELP!

Nelson received $10,000 on his 17th birthday. This is the accumulated amount of an

investment his parents made on the day he was born. The investment earned 9.5%/a,

compounded semi-annually.

a) Determine the amount that Danny’s parents invested 17 years ago. [3 marks]

b) How much interest did the investment earn? [1 mark]

Respuesta :

The amount that was invested 17 years ago is $2064.25.

The interest earned is  $7935.75.

What is the amount invested 17 years ago?

The formula that would used to determine the amount that was invested 17 years ago is:

P = FV / (1 + r)^nm

Where:

  • FV = Future value = 10,000
  • P = Present value
  • R = interest rate = 9.5 / 2 = 4.75%
  • m = number of compounding = 2
  • N = number of years = 17

10,000 / (1.0475)^(17 x 2) = $2064.25

Interest earned = 10,000 - 2064.25 = $7935.75

To learn more about future value, please check: https://brainly.com/question/18760477

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