Question

1. Your grandma will give you the following amounts at the end of the stated year: Year 2: $2,000 Year 4: $4,000 Year 6: $8,000 Year 8: $10,000  Instead of spending the money, you decide to put it in account earning 10%.  How much will you have at the end of year 11?

Answer 1

A B C D E TI G H Year Opening Balance Amount Deposited Total opening Balan Interest earned Closing balance 1 0 2 2,000.00 2,000.00 200.00 2,200.00 3 2,200.00 2,200.00 220.00 2,420.00 4 2,420.00 4,000.00 6,420.00 642.00 7,062.00 5 7,062.00 7,062.00 706.20 7,768.20 6 7,768.20 8,000.00 15,768.20 1,576.82 17,345.02 7 17,345.02 17,345.02 1,734.50 19,079.52 8 19,079.52 10,000.00 29,079.52 2,907.95 31,987.47 9 31,987.47 31,987.47 3,198.75 35,186.22 10 35,186.22 35,186.22 3,518.62 38,704.84 Step-1 We have taken opening balance & amount deposited seprately because amount deposited was not deposited in all years. Step-2 Closing balance will be sum of interest plus opening balance and that will become next year opening balance.

A B с D E F G Year 1 2 3 4 Opening Balance 0 1 2 3 4 =G3 =G4 5 6 7 =G5 =G6 5 Amount Deposited Total opening Balance 0 =C3+D3 2000 =C4+D4 0 =C5+D5 4000 =C6+D6 0 =C7+D7 8000 =C8+D8 0 =C9+D9 10000 =C10+D10 0 =C11+D11 0 =C12+D12 Interest earned Closing balance =D3*0.1 =D3+F3 =E4*0.1 =E4+F4 =E5*0.1 1=E5+F5 =E6*0.1 =E6+F6 =E7*0.1 =E7+F7 =E8*0.1 =E8+F8 =E9*0.1 =E9+F9 =E10*0.1 =E10+F10 =E11*0.1 =E11+F11 =E12*0.1 =E12+F12 6 8 9 =G7 =G8 7 10 8 9 11 12 13 =G9 =G10 =G11 10 Step - 1 14 15 We have taken opening balance & amount deposited seprately because amount deposited was not deposited in all years. 16 Step-2 17 18 19 20 Closing balance will be sum of interest plus opening balance and that will become next year opening balance.