Respuesta :
Answer:
$6,000
$2,000
More than $2,000
Step-by-step explanation:
Answer:
a) $6000
b) $2083.74
c) $8346.15
Step-by-step explanation:
Monthly Deposits, Pmt = $50
Interest rate, r = 5.75%/12 = 23/4800 = 0.00479
In 10 years, tenure, N = 10 x 12 = 120 months.
Total Investment = $50 x 120 = $6000.
[tex]FV = \frac{Pmt*[(1+r)^N -1]}{r}\\\\FV = \frac{50*[(1+0.00479)^{120} -1]}{0.00479}\\\\FV = \$8,083.74[/tex]
Interest Earned in 10 years = $8083.74 - $6000 = $2083.74
If they continue to invest for 20 years, tenure = 12 x 20 = 240 months.
[tex]FV = \frac{Pmt*[(1+r)^N -1]}{r}\\\\FV = \frac{50*[(1+0.00479)^{240} -1]}{0.00479}\\\\FV = \$22,429.89[/tex]
Interest Earned in 20 years = $22429.89 - $12000 = $10429.89
Interest Earned between 10 years and 20 years = $10429.89 - $2083.74 = $8346.15