you decided to get a summer job since you were 14 as a lifeguard. you have made 2000 each summer. you placed all your earning in your savings account each year. It's 5 years later and you want to determine how much interest you have made. use the calculator to determine this

Determine of interest made by placing $2,000 earnings each summer in savings account each year:

Total Interest$1,265.95

at 4% interest per annum.

Explanation:

a) Data and Calculations:

1. Data:

Earnings each summer = $2,000

Period = 5 years

Interest Rate = 4%

2. Using online calculator:

V (Future Value)$11,265.95

PV (Present Value)$9,259.79

N (Number of Periods)5.000

I/Y (Interest Rate)4.000%

PMT (Periodic Payment)$2,000.00

Starting Investment$0.00

Total Principal$10,000.00

Total Interest$1,265.95

3. By placing all your earning in your savings account each year after 5 years, you will get an interest of $1,265.95 and a total future value of $11,265.95, having deposited $10,000 ($2,000 each for 5 years).