Intro You put $1,000 into a savings account that pays 9% in annual interest. Part 1 How much money will you have after 4 years if the account pays only simple interest? 1360 Correct ✓ Interest per year: Int = PV-I = 1,000 - 0.09 = 90 Future value: FVN = PV + N - Int = 1,000+ 4.90 = 1,360 Part 2 How much money will you have after 4 years if the account pays interest compounded annually? 0+ decimals

Intro You put $1,000 into a savings account that pays 9% in annual interest. Part 1 How much money will you have after 4 years if the account pays only simple interest? 1360 Correct ✓ Interest per year: Int = PV-I = 1,000 - 0.09 = 90 Future value: FVN = PV + N - Int = 1,000+ 4.90 = 1,360 Part 2 How much money will you have after 4 years if the account pays interest compounded annually? 0+ decimals

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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