A jar contains jelly beans that are red, yellow, blue, and purple. Several people reach in and grab handfuls of jelly beans, the
1 answer:
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Given:
• Amount to save, A = $28,000
,• Time, t = 6 years
,• Interest rate, r = 5.3% ==> 0.053
,• Number of times compounded = quarterly = 4 times
Let's find the amount that must be deposited into the account quarterly.
Apply the formula:
Where:
FV is the future value = $28,000
r = 0.053
n = 4
t = 6 years
Thus, we have:
Let's solve for P.
We have:
Solving further:
Divide both sides by 28.0384237:
Therefore, the amount that must be deposited quarterly into the account is $998.60
ANSWER:
$998.60
Answer:
$2,753.79
Step-by-step explanation:
Compound Interest Formula
where:
- A = final amount
- P = principal amount
- r = interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods elapsed
Given:
- P = $2,000
- r = 3.25% = 0.0325
- n = 1
- t = 10
Substitute the given values into the formula and solve for A:
Therefore, the value of the investment after 10 years will be $2,753.79 to the nearest cent.