Question

HELP!

Answer 1

Answer:

$740 after 50 years.

Step-by-step explanation:

To solve this question we use the formula of compound interest :

$A=P(1+\frac{r}{n})^{nt}$

Where A = Future amount

           P = Principal amount ( $350 )

           r = rate of interest 1.5% (0.015)

           n = number of compounding in a year (4)

           t = time in years (50 years)

Now put the values in the formula

$A=350(1+\frac{0.015}{4})^{(4)(50)}$

$A=350(1+0.00375)^{200}$

$A=350(1.00375)^{200}$

A = 350 × 2.114

A = $739.91 ≈ $740

Investment would be $740 after 50 years.

Answer 2

Answer: Hence, this investment would be worth of $366.756

Step-by-step explanation:

Since we have given that

Amount he invests = $350

Rate of interest compounded quarterly = 1.5%

Number of years = 50 years = 1.25 quarters

As we know the formula for "Compound Interest ":

$Amount=P(1+\frac{r}{400})^n\\\\Amount=350(1+\frac{1.5}{400})^{12}\\\\Amount=\ 366.07$

For remaining half year, we first find the interest with using the above amount as principal amount.

$Interest=\frac{366.07\tiems 1.5\times 0.5}{4\times 100}\\\\Interest=\ 0.686$

Hence, this investment would be worth of

$366.07+0.686\\\\=\ 366.756$