Answer: B. 812.16$
Step-by-step explanation:
The concept of compound interest is that interest is added back to the principal sum so that interest is gained on that already-accumulated interest during the next compounding period.
Interest can be compounded on any given frequency schedule, from continuous to daily to annually. When incorporating multiple compounds per period (monthly compounding or quarterly compounding, etc), the general formula looks like this:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = number of times interest is compounded per unit "t"
t = the time the money is invested or borrowed for
<h3>Using the data provided in the question </h3>P = $4706
r = 4/100 = 0.04
n = 4 (compounded quarterly)
t = 4 years
A = $4706(1 + 0.04/4)¹⁶
A = $4706(1 + 0.01)¹⁶
A = $4706(1.01)¹⁶
A = $4706(1.1725787) = $5518.16
This formula gives the combined principal amount and its compound interest, so subtract the principal amount to get just the compound interest.
$5518.16 - $4706 = $812.16
Answer: B. 812.16$
Option A: >
Solution:
Given a triangle GHJ.
The line GH is perpendicular to line HJ.
This means the triangle is a right angled triangle.
In ΔGHJ, GH is the base of the triangle and
HJ is a height of the triangle.
Then the third side must be the hypotenuse of the right triangle.
We know that by the Pythagoras theorem,
This clearly shows that the hypotenuse is greater than the height.
⇒ GJ > HJ
Option A: > is the correct answer.
If line GH is perpendicular to line HJ, then GJ is > HJ.