watch the video and then solve the problem given below. click here to watch the video. you deposit $5000 in…

Explanation:

Step1: Use future - value - of - an - ordinary - annuity formula

The formula for the future value of an ordinary annuity is $F = A\times\frac{(1 + r)^{n}-1}{r}$, where $A=$5000$ (annual payment), $r = 0.04$ (annual interest rate), and $n = 3$ (number of years). $F=5000\times\frac{(1 + 0.04)^{3}-1}{0.04}$

Step2: Calculate $(1 + 0.04)^{3}$

$(1 + 0.04)^{3}=1.04^{3}=1.04\times1.04\times1.04 = 1.124864$

Step3: Calculate $(1 + 0.04)^{3}-1$

$1.124864-1=0.124864$

Step4: Calculate $\frac{(1 + 0.04)^{3}-1}{r}$

$\frac{0.124864}{0.04}=3.1216$

Step5: Calculate $F$

$F = 5000\times3.1216=$15608$

Step6: Calculate the total amount deposited

The total amount deposited is $A\times n=5000\times3=$15000$

Step7: Calculate the interest

Interest $=F-(A\times n)=15608 - 15000=$608$

Answer:

$608.00$