On January 1, 1518, Dracky Lou deposited £17 into an account earning an annual interest rate...

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On January 1, 1518, Dracky Lou deposited £17 into an accountearning an annual interest rate of 3%. Dracky Lou then took a longnap in his coffin, and woke up on January 1, 2018. Dracky Lou nowplans to make the following expenditures using money from thisaccount: On January 1, 2018, Dracky wishes to purchase a Blood Bankfor £12.5 million. On January 1, 2118, Dracky wishes to purchaseand modernize a crypt in Bucharest Romania. He estimates that thecost will be £225 million. Every year for the each of the next 30years, Dracky Lou wishes to donate £1 million to his favoriteauthor, Stephanie Niyer. The first donation will be on January 1,2019. On January 16, 2118 Dracky Lou plans to take another snooze.If he next wakes on January 1, 2218, how much money will he haveleft in his account? Assume a 3% annual interest ratethroughout.
Please show work including equations used!

Answer & Explanation Solved by verified expert

4.4 Ratings (939 Votes)

The formula for compound interest amount is A P 1rn Where A is the total value of the investment P is the principal invested r is the rate of interest n is the number of years The number of years Dracky Lou sleeps for is 20181518 500 Hence the value of investment in when he wakes up is A171003500 A44571913 or 4457 See Answer

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