Thirteen years ago,you deposited $2400 into a superannuation fund.Eight years ago,you added an additional $1000 to this account.You earned 8 per cent,compounded annually,for the first 5 years,and 5.5 per cent,compounded annually,for the last 8 years.How much money do you have in your account today?

Question

Quizplus · Accepted Answer

To find the total amount in the account today, calculate the future value of each deposit separately and then sum them up. The $2400 deposit grows for 13 years: 5 years at 8% and 8 years at 5.5%. The $1000 deposit grows for 8 years at 5.5%. The calculations are as follows:1. For the $2400 deposit:   - After 5 years at 8%: $2400 * (1 + 0.08)^5 = $3528.96   - Then, this amount grows for 8 more years at 5.5%: $3528.96 * (1 + 0.055)^8 = $5685.592. For the $1000 deposit:   - It grows for 8 years at 5.5%: $1000 * (1 + 0.055)^8 = $1261.00Adding these two amounts gives the total: $5685.59 + $1261.00 = $6946.59.

Thirteen Years Ago,you Deposited $2400 into a Superannuation Fund