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adell [148]
3 years ago
9

I NEED HELP PLEASE, THANKS! :) Heather invests $4,900 in an account with a 3.5% interest rate, making no other deposits or withd

rawals. What will Heather’s account balance be after 5 years if the interest is compounded 2 times each year? (SHOW WORK)
Mathematics
1 answer:
Alex3 years ago
5 0

Answer:    $5,828.28

<u>Step-by-step explanation:</u>

Use the Compound Interest formula:     A=P(1+\frac{r}{n})^{nt}       where

  • A is the accrued amount (balance)
  • P is the principal (initial amount invested)
  • r is the interest rate (in decimal form)
  • n is the number of times compounded each year
  • t is the time of the investment (in years)

Given: P = 4,900

           r = 3.5% (0.035)

           n = 2

           t = 5

A=4,900\bigg(1+\dfrac{0.035}{2}\bigg)^{2(5)}\\\\\\.\qquad = 4900(1.0175)^{10}\\\\\\.\qquad = \large\boxed{5,828.28}\\

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