:)))))) ))): what is the answer

ULLIVLY/1/2/3/assessment

zvonat [6]

<h3>The worth after 4 years is $ 680.24</h3>

Solution:

The formula for compound interest, including principal sum, is:

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

Where,

A = the future value of the investment

P = the principal investment amount

r = the annual interest rate (decimal)

n = the number of times that interest is compounded per unit t

t = the time the money is invested

From given,

n = 1 ( since interest is compounded annually)

p = 500

t = 4

$r = 8 \% = \frac{8}{100} = 0.08$

Substituting the values we get,

$A = 500(1+ \frac{0.08}{1})^{1 \times 4}\\\\A = 500(1.08)^4\\\\A = 500 \times 1.36048896\\\\A = 680.24448 \approx 680.24$

Thus the worth after 4 years is $ 680.24

3 0

2 years ago

3. You want to have $4000 in your savings account after 2 years. Find the amount you should deposit for each of the situations d

pychu [463]

Answer:

Part A)

About $3767.34.

Part B)

About $3692.47.

Step-by-step explanation:

Part A)

Recall that compound interest is given by the formula:
$\displaystyle A = P\left(1+\frac{r}{n}\right)^{nt}$

Where A is the final amount, P is the initial amount, r is the interest rate, n is the number of times compounded per year, and t is the number of years.

To obtain $4000 after two years, let A = 4000 and t = 2.

Because the account pays 3% interest compounded monthly, r = 0.03 and n = 12.

Substitute and solve for P:

$\displaystyle \begin{aligned} (4000) & = P\left(1+\frac{(0.03)}{(12)}\right)^{(12)(2)} \\ \\ P & = \frac{4000}{\left(1+\dfrac{(0.03)}{(12)}\right)^{(12)(2)}} \\ \\ & \approx \$3767.34\end{aligned}$