Justin Beiber wants to save enough money to make a down payment on a new home. He decided to put $10,000 into a savings account at the end of each of the next ten years. If he earns 4% compound interest, how much money will he have at the end of the ten years

$14,802.44

Explanation:

Compound interest is the accumulated interest calculated on initial right from deposit till withdrawal. It always span over a long period of time and makes deposit grow faster.

Workings

Principal - $10,000

Rate - 4%

Period = 10 years

Formula  = A = [P(1+i)^n]-p

= [10000(1+0.04)^10]-10000

$14,802.44

Justin Beiber would have in the savings account $14,802.44   at the end of the ten years

Explanation:

The amount that Justin Beiber would have at end of ten years with interest rate of 4% can be determined using the future value provided below:

FV=PV*(1+r)^n

PV is the amount deposited into the savings account today i.e $10,000

r is the rate on the deposit at 4%

n is the number of years the savings would last which is 10 years

FV=$10,000*(1+4%)^10

FV=$10,000*(1+0.04)^10

FV=$10,000*(1.04)^10

FV=$10,000*1.480244285

FV=$14,802.44  

The dollar interest =$14,802.44-$10,000.00=$4,802.44

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

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