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Periodic Deposit: $1000 at the end of each year Rate: 4.5% compounded annually Time: 11 years

Sagot :

MrRoyalidn

The interest amount is $622.85

How to determine the interest amount?

The given parameters are:

  • Principal, P =$1000
  • Rate, r = 4.5% compounded annually i.e. n = 1
  • Time, t = 11 years

The interest amount is calculated as:

I = P(1 + r/n)^(nt) - P

This gives

I = 1000 * (1 + 4.5%/1)^(1 * 11) - 1000

Evaluate the products and the quotient

I = 1000 * (1 + 0.045)^(11) - 1000

Evaluate the sum

I = 1000 * (1.045)^(11) - 1000

Solve

I = 622.85

Hence, the interest amount is $622.85

Read more about compound interest at:

https://brainly.com/question/24924853

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