00:01
In the first question of this problem, it is given that meta deposits $5 ,000 at the end of years, 2, 4 and 6.
00:14
And also the interest is 8 .2 percentage compounded annually.
00:21
We are asked to determine the value of the money at the end of the 6th year.
00:30
So here the interest is compounded annually that means once every year and the person is depositing dollar 5 ,000 at the end of the second year and therefore at the beginning of the third year the amount in the account is dollar 5 ,000 and during this year there will be interest added on it at a rate of 8 .2 percentage which is 0 .082.
01:09
So the interest will be 0 .082 times the balance which is 5 ,000.
01:15
So that during the third year the account balance become dollar 5 ,410.
01:22
Now during the beginning of the fourth year, the balance in the account will be 5 ,410 plus the interest on the amount which is 4th year.
01:36
The balance in the account will be 5 ,410 plus the interest on the amount which is 5 ,410 and at the end of the fourth year, 5 ,000 more will be added to the account.
01:47
So the total will be 5 ,000 plus 5 ,410 plus the interest on 5 ,410.
01:56
So at the end, the balance in the account will be dollar, 10 ,853 .6.
02:08
Now at the beginning of the fifth year, the amount in the account will be 10 ,853 .62 times the interest on it...