Answer:
On her 60th birthday, she would have earned $83048.5.
Step-by-step explanation:
The formula to calculate the compound interest is:
[tex]A=P(1+\frac{r}{100} )^{n}[/tex] --- (1)
where A is Principal and interest, r is the rate of interest and n is the number of years compounded.
For our problem,
P = 25000,
r = 0.05 and
n = 60 - 30 = 30
Substitute these values in (1), we get,
[tex]A=25000(1+0.05)^{30}[/tex]
[tex]=25000(1.05)^{30}[/tex]
= 25000(4.32194)
= 108048.5
Compound Interest = Amount - Principal
= 108048.5 - 25000
= 83048.50
Hence, on her 60th birthday, she would have earned $83048.5.
Answer:
The interest in 30 years be 8305000 cent.
Step-by-step explanation:
Formula
[tex]Amount = P(1+r)^{t}[/tex]
Where P is the principle , r is the rate of interest in the decimal form and t is the time.
As given
On her 30th birthday, Ann Marie opened a new compound interest account with $25,000.
The account pays 5% interest annually.
If Ann Marie retires on her 60th birthday and close the account at that time .
P = $25000
5% is written in the decimal form.
[tex]= \frac{5}{100}[/tex]
= 0.05
r = 0.05
As Ann Marie open account on his 30 th birthday and close it at its 60 th birthday .
Thus
t = 60 - 30
t = 30 years
Put all the value in the formula
[tex]Amount = 25000(1+0.05)^{30}[/tex]
[tex]Amount = 25000(1.05)^{30}[/tex]
[tex]Amount = 25000\times 4.322 (Approx)[/tex]
[tex]Amount = \$ 108050[/tex]
As
Amount = Principle + Interest
Putting the value
$108050 = $25000+ Interest
$108050 - $25000 = Interest
Interest = $83050
As 1 dollar = 100 cent
Convert $83050 convert into cent .
$83050 = 83050 × 100
= 8305000 cent.
Therefore the interest in 30 years be 8305000 cent.
