Question

Does anybody know how to solve this plz

Answer 1

$A=P(1+ \dfrac{r}{m})^{mt}$

This was the formula that was given.

A is the final amount, which is what we're solving for.

P is the original money amount, which is $5,000

r is the interest rate, which is 1%, or 0.01

m is the amount of times the interest is compounded per year. Since the interest is compounded quarterly, interested is compounded 4 times per year.

t is the time the money is in the bank, which is 2 years

That's all we need to solve the equation now

$A=P(1+ \dfrac{r}{m})^{mt}$

$=5000(1+ \dfrac{0.01}{4})^{4(2)}$

$=5000(1.0025)^{8}$

$\approx 5100.88$

That's your answer

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