Find 3 ratios that are equivalent to the given ratio.
1 answer:
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Answer:
<em>A = $5183.36</em>
Step-by-step explanation:
<u>Compound Interest</u>
It occurs when the interest is reinvested rather than paying it out. Interest in the next period is then earned on the principal sum plus previously accumulated interest.
The formula is:
Where:
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
Abdul deposited P=$4000 into an account with r=2.6% = 0.026 compounded quarterly. Since there are 4 quarters in a year, n=4. We are required to calculate the amount in the account after t=10 years.
Applying the formula:
A = $5183.36
Divide both sides by -3, and replace with
. Then
Factorize the quadratic in to get
which in turn means
But for all real
, so we can ignore the first solution. This leaves us with
If we allow for any complex solution, then we can continue with the solution we ignored: