Jozy Altidore invested $9,700 at 8% annual interest, and left the money invested

Question

Jozy Altidore invested $9,700 at 8% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Jozy withdrew the accumulated amount of money. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What amount did Jozy withdraw, assuming the investment earns simple interest? The amount Jozy withdrew (b) What amount did Jozy withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) The amount Jozy withdrew

Explanation / Answer

a Amount withdrawn = 9700+(9700*8%*12)= $19012 b Amount withdrawn = 9700*2.51817= $24426.25

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