Step-by-step explanation:
To calculate the amount of money you have after 28 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money after t years
P = the initial principal amount ($5000 in this case)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = time in years
For the first 5 years at 8% interest compounded annually:
P = $5000
r = 8% or 0.08
n = 1
t = 5
A1 = 5000(1 + 0.08/1)^(1*5)
A1 = 5000(1 + 0.08)^5
A1 = 5000(1.08)^5
A1 ≈ 5000(1.4693)
A1 ≈ $7346.50
So after the first 5 years, you have approximately $7346.50.
For the next 3 years at 10% interest compounded annually:
P = $7346.50 (the amount after the first 5 years)
r = 10% or 0.10
n = 1
t = 3
A2 = 7346.50(1 + 0.10/1)^(1*3)
A2 = 7346.50(1 + 0.10)^3
A2 = 7346.50(1.10)^3
A2 ≈ 7346.50(1.331)
A2 ≈ $9782.60
So after the next 3 years, you have approximately $9782.60.
For the final 20 years at 12% interest compounded annually:
P = $9782.60 (the amount after the first 8 years)
r = 12% or 0.12
n = 1
t = 20
A3 = 9782.60(1 + 0.12/1)^(1*20)
A3 = 9782.60(1 + 0.12)^20
A3 = 9782.60(1.12)^20
A3 ≈ 9782.60(9.646)
A3 ≈ $94394.72
So after the final 20 years, you have approximately $94394.72.
Therefore, after 28 years, you have approximately $94394.72.
Answer:
After 28 years, you would have approximately $6652.80.
I hope this helped answer your question.
If you could give me brainliest, it would help out a ton!
Step-by-step explanation:
To calculate the total amount of money you have after 28 years, we need to calculate the interest earned for each period and add it to the initial amount of $5000.
1. Calculate the interest earned in the first 5 years at a rate of 8%:
Interest = 8% of $5000
= 0.08 * $5000
= $400
2. Add the interest earned in the first 5 years to the initial amount:
Total after 5 years = $5000 + $400
= $5400
3. Calculate the interest earned in the next 3 years at a rate of 10%:
Interest = 10% of $5400
= 0.10 * $5400
= $540
4. Add the interest earned in the next 3 years to the total after 5 years:
Total after 8 years = $5400 + $540
= $5940
5. Calculate the interest earned in the remaining 20 years at a rate of 12%:
Interest = 12% of $5940
= 0.12 * $5940
= $712.80
6. Add the interest earned in the remaining 20 years to the total after 8 years:
Total after 28 years = $5940 + $712.80
= $6652.80
Therefore, after 28 years, you would have approximately $6652.80.
