On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019?
On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019?
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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![On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will
be added to the fund balance at the end of each year.
Required:
1. What will be the balance in the savings account at the end of 7 years?
2. What is the total interest for the 7 years?
3. How much interest revenue did the fund earn in 2018 and in 2019?
Show Transcribed Text](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbdab762e-9acf-4656-bf07-3c106311d8f5%2Fb8412f2d-1a08-4360-a698-df9597cda7df%2Fxk6d9u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will
be added to the fund balance at the end of each year.
Required:
1. What will be the balance in the savings account at the end of 7 years?
2. What is the total interest for the 7 years?
3. How much interest revenue did the fund earn in 2018 and in 2019?
Show Transcribed Text
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