ON July 6, 2008, you recieve $1000 as a present from your parents. They will give you $1000 more each year you leave this money invested in the bank. The bank will give you a rate of 4.25% compounded annually. You are able to hold back and leave it invested until July 6, 2055. How much money will the investment be worth? How much is principal? How much is interest?
Thanks!
This is an ideal question which can be used for alot of things;
10001042.510002129.30610003262.30210004443.4510005674.79610006958.47510008296.7110009691.82100011146.22100012662.44100014243.09100015890.92100017608.79100019399.66100021266.65100023212.98100025242.03100027357.32100029562.5100031861.41100034258.02100036756.48100039361.13100042076.48100044907.23100047858.29100050934.77100054141.99100057485.53100060971.16100064604.94100068393.15100072342.36100076459.41100080751.43100085225.87100089890.47100094753.31100099822.831000105107.81000110617.41000116361.110001223491000128591.31000135098.91000141883.11000$148955.7
Therefore, the investment is worth $148,955 after 47 years.
Andrew M.
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