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 #2
avatar+118609 
+5

okay, Say you put the money in the bank at the END of each yeaar.

How much will you have at the END of 5 years.

Ok

the first deposit of $2548 will be earning 5% pa  interest for 4  years

This is how much it will grow to

$${\mathtt{2\,548}}{\mathtt{\,\times\,}}{\left({\mathtt{1.05}}\right)}^{{\mathtt{4}}} = {\mathtt{3\,097.109\: \!925}}$$

that is $3097.10

 

the second deposit of $2548 will be earning 5% pa  interest for 3  years

This is how much it will grow to

$${\mathtt{2\,548}}{\mathtt{\,\times\,}}{\left({\mathtt{1.05}}\right)}^{{\mathtt{3}}} = {\mathtt{2\,949.628\: \!5}}$$

that is $2949.63

 

the third deposit of $2548 will be earning 5% pa  interest for 2  years

This is how much it will grow to

$${\mathtt{2\,548}}{\mathtt{\,\times\,}}{\left({\mathtt{1.05}}\right)}^{{\mathtt{2}}} = {\mathtt{2\,809.17}}$$

that is $2809.17

 

the forth deposit of $2548 will be earning 5% pa  interest for 1  years

This is how much it will grow to

$${\mathtt{2\,548}}{\mathtt{\,\times\,}}\left({\mathtt{1.05}}\right) = {\mathtt{2\,675.4}}$$

that is $2675.40

 

the fith deposit of $2548 will be earning 5% pa  interest for 0  years (you only just now depositied it

So it will still be worth  $2548

 

NOW add all those together and you will see how much your deposits will grow to after 5 years.

 

$${\mathtt{3\,097.1}}{\mathtt{\,\small\textbf+\,}}{\mathtt{2\,949.63}}{\mathtt{\,\small\textbf+\,}}{\mathtt{2\,809.17}}{\mathtt{\,\small\textbf+\,}}{\mathtt{2\,675.4}}{\mathtt{\,\small\textbf+\,}}{\mathtt{2\,548}} = {\mathtt{14\,079.3}}$$

.
Jan 4, 2015
 #3
avatar+118609 
0
Jan 4, 2015

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