It’s the second one, cuz that’s the correct formula and equation
Answer:
5.19
Step-by-step explanation:
3 rounds down to 0
5.190
5.19 is to the 100th
17. The answer should be 17
We know that, Amount in Compound interest is given by :
![\bigstar \ \ \boxed{\sf{Amount = Principal\bigg(1 + \dfrac{Rate \ of \ Interest}{100}\bigg)^{Time \ Period}}}](https://tex.z-dn.net/?f=%5Cbigstar%20%5C%20%5C%20%5Cboxed%7B%5Csf%7BAmount%20%3D%20Principal%5Cbigg%281%20%2B%20%5Cdfrac%7BRate%20%5C%20of%20%5C%20Interest%7D%7B100%7D%5Cbigg%29%5E%7BTime%20%5C%20Period%7D%7D%7D)
Given : Principal = $2000
Given : Annual yield is 5% and the interest is compounded quarterly
It means : Interest is compounded 4 times in a year
![\implies \sf{Rate \ of \ Interest = \dfrac{R}{4} = \dfrac{5}{4}}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BRate%20%5C%20of%20%5C%20Interest%20%3D%20%5Cdfrac%7BR%7D%7B4%7D%20%3D%20%5Cdfrac%7B5%7D%7B4%7D%7D)
![\sf{\implies Time \ period = (25 \times 4) = 100}](https://tex.z-dn.net/?f=%5Csf%7B%5Cimplies%20Time%20%5C%20period%20%3D%20%2825%20%5Ctimes%204%29%20%3D%20100%7D)
Substituting all the values in the formula, we get :
![\implies \sf{Amount = 2000\bigg(1 + \dfrac{\dfrac{5}{4}}{100}\bigg)^{100}}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BAmount%20%3D%202000%5Cbigg%281%20%2B%20%5Cdfrac%7B%5Cdfrac%7B5%7D%7B4%7D%7D%7B100%7D%5Cbigg%29%5E%7B100%7D%7D)
![\implies \sf{Amount = 2000\bigg(1 + \dfrac{5}{400}\bigg)^{100}}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BAmount%20%3D%202000%5Cbigg%281%20%2B%20%5Cdfrac%7B5%7D%7B400%7D%5Cbigg%29%5E%7B100%7D%7D)
![\implies \sf{Amount = 2000\bigg(1 + \dfrac{1}{80}\bigg)^{100}}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BAmount%20%3D%202000%5Cbigg%281%20%2B%20%5Cdfrac%7B1%7D%7B80%7D%5Cbigg%29%5E%7B100%7D%7D)
![\implies \sf{Amount = 2000\bigg(\dfrac{81}{80}\bigg)^{100}}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BAmount%20%3D%202000%5Cbigg%28%5Cdfrac%7B81%7D%7B80%7D%5Cbigg%29%5E%7B100%7D%7D)
![\implies \sf{Amount = 2000 \times (1.0125)^{100}}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BAmount%20%3D%202000%20%5Ctimes%20%281.0125%29%5E%7B100%7D%7D)
![\implies \sf{Amount = 2000 \times 3.463}}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BAmount%20%3D%202000%20%5Ctimes%203.463%7D%7D)
![\implies \sf{Amount = 6926.8}](https://tex.z-dn.net/?f=%5Cimplies%20%5Csf%7BAmount%20%3D%206926.8%7D)