On January 1, 2009, you deposited $5,600 in a savings account. The account will

Question

On January 1, 2009, you deposited $5,600 in a savings account. The account will earn 9 percent annual compound interest, which will be added to the fund balance at the end of each year. (Use Table 1.)

What will be the balance in the savings account at the end of 4 years? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.)

What is the total interest for the 4 years? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.)

What will be the balance in the savings account at the end of 4 years? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.)

Explanation / Answer

1) 5600 (1.09)^4 = $ 7905 2) Interest = 7905-5600 = $ 2305 3)in 2009 interest = 5600(1.09) -5600 =$ 504 in 2010 interest = 5600(1.09)^2 - 5600 -504 = $549

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