Question

You are depositing $4,500 today at an annual interest rate of 7.2 percent. How much additional interest will you earn if you leave the money invested for 45 years instead of 40 years?

Multiple Choice

• $22,441.56

• $6,370.69

• $30,185.14

• $25,723.08

• $11,590.93

Answer 1

Answer : Option c i.e. $30185.14 is the correct answer

Explanation : In the function section the maturity amount is given when the maturity period is 45 years. In the same way calculation is done for 40 years. Then subtract the maturity value of 45 years and 40 years. The answer will come $30185.14