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timofeeve [1]
3 years ago
7

Help yoooooooo!!! I’m failimg

Mathematics
1 answer:
photoshop1234 [79]3 years ago
3 0

Answer:

12 im guessing .... is it multiple choice ?

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Find the amount in the bank after 7 years if interest is compounded quarterly?
qwelly [4]

Answer:

a) amount in the bank after 7 years if interest is compounded quarterly is $6,605

b) amount in the bank after 7 years if interest is compounded quarterly is $6,612.57

Step-by-step explanation:

We are given:

Principal Amount P= 5000

Rate r= 4% = 0.04

time t = 7 years

The formula used is: A=P(1+\frac{r}{n})^{nt}

where A is future value, P is principal amount, r is rate, n is compounded value and t is time

a) Find the amount in the bank after 7 years if interest is compounded quarterly?

If interest is compounded quarterly then n = 4

Using values given in question and finding A

A=P(1+\frac{r}{n})^{nt}\\A=5000(1+\frac{0.04}{4})^{4*7} \\A=5000(1+0.01)^{28}\\A=5000(1.01)^{28}\\A=5000(1.321)\\A=6,605

So, amount in the bank after 7 years if interest is compounded quarterly is $6,605

b) Find the amount in the bank after 7 years if interest is compounded monthly?

If interest is compounded quarterly then n = 12

Using values given in question and finding A

A=P(1+\frac{r}{n})^{nt}\\A=5000(1+\frac{0.04}{12})^{12*7} \\A=5000(1+0.003)^{84}\\A=5000(1.003)^{84}\\A=5000(1.322)\\A=6,612.57

So, amount in the bank after 7 years if interest is compounded quarterly is $6,612.57

6 0
2 years ago
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