Respuesta :
Sure, here's the sinking fund table:
| Period | Amount of Deposit | Interest Earned | Account Balance |
|--------|-------------------|-----------------|-----------------|
| 1 | $750 | $45 | $795 |
| 2 | $750 | $47.70 | $1592.70 |
| 3 | $750 | $49.92 | $2392.62 |
| 4 | $750 | $52.76 | $3195.38 |
| 5 | $750 | $55.71 | $4011.09 |
To calculate the interest earned, we use the formula for compound interest:
\(A = P(1 + r/n)^{nt}\)
Where:
- \(A\) is the amount of money accumulated after n years, including interest.
- \(P\) is the principal amount (the initial amount of money).
- \(r\) is the annual interest rate (in decimal).
- \(n\) is the number of times that interest is compounded per unit \(t\).
- \(t\) is the time the money is invested for, in years.
In this case, \(P = $750\), \(r = 6\% = 0.06\), \(n = 1\) (compounded annually), and \(t = 1, 2, 3, 4, 5\).
| Period | Amount of Deposit | Interest Earned | Account Balance |
|--------|-------------------|-----------------|-----------------|
| 1 | $750 | $45 | $795 |
| 2 | $750 | $47.70 | $1592.70 |
| 3 | $750 | $49.92 | $2392.62 |
| 4 | $750 | $52.76 | $3195.38 |
| 5 | $750 | $55.71 | $4011.09 |
To calculate the interest earned, we use the formula for compound interest:
\(A = P(1 + r/n)^{nt}\)
Where:
- \(A\) is the amount of money accumulated after n years, including interest.
- \(P\) is the principal amount (the initial amount of money).
- \(r\) is the annual interest rate (in decimal).
- \(n\) is the number of times that interest is compounded per unit \(t\).
- \(t\) is the time the money is invested for, in years.
In this case, \(P = $750\), \(r = 6\% = 0.06\), \(n = 1\) (compounded annually), and \(t = 1, 2, 3, 4, 5\).
