Mathematics

James deposits $4000 in abank on every 1st January starting from this year at a fixed interest rate of 6%p.a compounded yearly. Find the increase in theamount of the money in his bank account between the end of the 5th year and theend of the 10th year. (give your answer correctto the nearest dollar.)

Increase in the amount between the end of the 5th year and that of the 10thyear
= $4000(1 + 6%)¹⁰ - $4000(1 + 6%)⁵
= $4000(1.06¹⁰ - 1.06⁵)
= $1810 (to the nearest dollars)

2011-09-18 18:46:50 補充：
Interest got in 10 years
= $4000(1 + 6%)^10
= $4000(1.06)^10

Interest got in 5 years
= $4000(1 + 6%)^5
= $4000(1.06)^5

Difference in amount
= $4000(1.06)^10 - $4000(1.06)^5
= $1810 (to the nearest dollars) ...... (answer)