Porsha calculates the amount of money she will have at the end of 6 years on a $5,000 investment earning 3.75% interest compound
ed quarterly. She writes the following expression: Which of the following statements about Porsha's expression is true? a. Porsha's expression is correct. b. Porsha's expression should have 1 + 0.009375 in the parentheses. c. Porsha's expression should have an exponent of 6, not 24. d. Porsha's expression should have both 1 + 0.009375 in the parentheses and an exponent of 6.
Porsha` s expression: 5,000 ( 1 + 0.0375 ) ^24 A = P * ( 1 + i ) ^n n = 6 * 4 = 24 i = 0.0375 : 4 = 0.009375 Porsha`s expression is wrong. True expression is: 5,000 * ( 1 + 0.009375 ) ^24 Answer: B ) Porsha`s expression should have 1 + 0.009375 in the parentheses.
