Question

the annual worth in years 4 through 8 of an ammount of money x that will be recieved 2 years from now is 4000$ at in intrest rate of 5% per year of x is closest to

Answer 1

Let's we assume "x" money is =100

2 year interst=100*5/100*2 = 10

then 1 year amount=100+5=105

this is the value of 4000

now 4000/110*100=3636.36

means An amount of money(X) value is= 3636,36

now we have to find the annual worth in years 4 through 8 of an amount,

3809.52*8 = 29090.90

now put this in the formula of simple intrest

formula is I= P*R%*T and A= P+I

here, A= Amount (P+I)

P= Principle ( amount)

R= Rate of intrest

T= Time

I =Intrest

now, I= 29090.90*5%*4=5818.18

A = 29090.90+5818.18= 34909.08 Ans