Question

assume someone had $100,000 in their retirement account on 3/3/1/2013. the five year rate of 3.98% means that each year their initial balance will grow by 3.98%. to find out how much money they will have in their account five years later we can fill in the following table:

Explanation:

Step1: Calculate for 3/31/2013

• Initial Principal: $100,000$
• Interest: $100000\times3.98\%= 100000\times0.0398 = 3980$
• Ending Principal: $100000 + 3980=103980$

Step2: Calculate for 3/31/2014

• Initial Principal: $103980$
• Interest: $103980\times3.98\%=103980\times0.0398\approx4138.40$
• Ending Principal: $103980+4138.40 = 108118.40$

Step3: Calculate for 3/31/2015

• Initial Principal: $108118.40$
• Interest: $108118.40\times3.98\%=108118.40\times0.0398\approx4303.11$
• Ending Principal: $108118.40 + 4303.11=112421.51$

Step4: Calculate for 3/31/2016

• Initial Principal: $112421.51$
• Interest: $112421.51\times3.98\%=112421.51\times0.0398\approx4474.38$
• Ending Principal: $112421.51+4474.38 = 116895.89$

Step5: Calculate for 3/31/2017

• Initial Principal: $116895.89$
• Interest: $116895.89\times3.98\%=116895.89\times0.0398\approx4652.46$
• Ending Principal: $116895.89+4652.46=121548.35$

Step6: Calculate for 3/31/2018

• Initial Principal: $121548.35$
• Interest: $121548.35\times3.98\%=121548.35\times0.0398\approx4837.63$
• Ending Principal: $121548.35 + 4837.63=126385.98$

Date	Initial Principal	Interest	Ending Principal
3/31/2014	$103980$	$\approx4138.40$	$108118.40$
3/31/2015	$108118.40$	$\approx4303.11$	$112421.51$
3/31/2016	$112421.51$	$\approx4474.38$	$116895.89$
3/31/2017	$116895.89$	$\approx4652.46$	$121548.35$
3/31/2018	$121548.35$	$\approx4837.63$	$126385.98$

Answer:

The filled - in table is shown above.