Fatzamatah is a simple person, so he only invests in simple interest accounts. At the end of 10 years he wants to have $50,000 in his bank account. He can get an annual interest rate of 5% from the bank for 10 years. How much money (Principal) must he put down (at t = 0) to accrue a future value of $50000 in 10 years? Calculate his net earnings (I) over the 10 years.

Fatzamatah is a simple person, so he only invests in simple interest accounts. At the end of 10 years he wants to have $50,000 in his bank account. He can get an annual interest rate of 5% from the bank for 10 years. How much money (Principal) must he put down (at t = 0) to accrue a future value of $50000 in 10 years? Calculate his net earnings (I) over the 10 years.

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter8: Sequences And Series

Section8.4: Mathematics Of Finance

Problem 2E

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