4. Let's say you get a S8000 inheritance, and you wisely decide to put it into...

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4. Let's say you get a S8000 inheritance, and you wisely decide to put it into a long-term investment that pays 7% in simple interest each year. How much interest will you earn at the end of five years if you withdrew the interest (did not reinvest the interest) each year? Time Starting Value of Interest Earned That Year Ending Value of Account Account 8000 First year Second year Third year Fourth year Fifth year 8000 8000 8000 8000 Total Interest Earned: Similar to the table above. How much money will you have at the end of five years if you did reinvest the interest earned each year? (Now you are using the "Ending Value of Account" as the "Starting Value" for the next year.) Round answers to the nearest cent. Starting Value of Account Time Interest Earned That Year Ending Value of Account First year Second year Third year 8000 Fourth year Fifth year (Bonus: How much extra did you earn in interest by the end of five years by reinvesting the interest? 4. Let's say you get a S8000 inheritance, and you wisely decide to put it into a long-term investment that pays 7% in simple interest each year. How much interest will you earn at the end of five years if you withdrew the interest (did not reinvest the interest) each year? Time Starting Value of Interest Earned That Year Ending Value of Account Account 8000 First year Second year Third year Fourth year Fifth year 8000 8000 8000 8000 Total Interest Earned: Similar to the table above. How much money will you have at the end of five years if you did reinvest the interest earned each year? (Now you are using the "Ending Value of Account" as the "Starting Value" for the next year.) Round answers to the nearest cent. Starting Value of Account Time Interest Earned That Year Ending Value of Account First year Second year Third year 8000 Fourth year Fifth year (Bonus: How much extra did you earn in interest by the end of five years by reinvesting the interest?

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Sol Calculation of interest when there is no reinvestment and interest is withdrawn ... View the full answer