hi!..a bit silly,but plz give me the solution to this prob..

[suruchika83]

Bank pays A 4% simple interest compounded annually.If A deposits $100 at the beginning of each years of 5 years,what would be my balance at the end of 5 years?

plz do xplain..
thanx..

[ritika_j]

hey acc to me the ans is 563.31

if this is correct then i can explain u.

[ritika_j]

5 yrs and every yr add $100 ...

1st yr = 100+4% interest = 104
2nd yr =104+100=204+4% interest =204+8.16=212.16
3rd yr =212.16+100=312.16+4% interest=312.16+12.49=324.65
4th yr =324.65+100=424.65+4% int=424.65+16.99=441.64
5th yr =441.64+100=541.64+4% int =541.64+21.67=563.31