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Basile [38]
3 years ago
11

If you invest $5,000 at 1.8 percent for 5 years, compounded quarterly, what is the amount in the

Mathematics
1 answer:
Drupady [299]3 years ago
4 0

Answer: C. $5,470

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1 + r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $5000

r = 1.8% = 1.8/100 = 0.018

n = 4 because it was compounded 3 times in a year(12/4 = 3 times)

t = 5 years

Therefore,

A = 5000(1 + 0.018/4)^4 × 5

A = 5000(1 + 0.0045)^20

A = 5000(1.0045)^20

A = $5470 to the nearest whole number

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<h3>Answer:  0.2</h3>

----------------------------------

Work Shown

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========================================================

Part (b)

<h3>Answer:  3.38</h3>

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