Question

Suppose the contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a year(compounded once per year). That's probably one less pizza per week! But if you contribute faithfully each week into this account, how much money would you have saved through the compounding of interest by the end of 15 years

Answer 1

The money that should be saved at the end of 15 years is $12,103.52

Step-by-step explanation:

The computation of the money that should be saved at the end of 15 years is shown below:

= A(F/A, i, N)

= 520 (F?A, 6,15)

= 520(23.2760)

= $12,103.52

hence, the money that should be saved at the end of 15 years is $12,103.52

We simply applied the above formula so that the correct answer could come

The same is to be considered