Answer:
Step-by-step explanation:
The Simple Interest Equation is
where
A = Total Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
t = Time Period involved in months or years
In this case, we do not know the values of the equation (A and P), but we know the amount of interest accrued
If we define our principal whit this formula, we are able to know the rest of the values:
clearing
replacing
Solving
Answer:
There will be $5624.32 in the account after 3 years if the interest is compounded annually.
There will be $5630.812 in the account after 3 years if the interest is compounded semi-annually.
There will be $5634.125 in the account after 3 years if the interest is compounded quarterly.
There will be $5636.359 in the account after 3 years if the interest is compounded monthly
Step-by-step explanation:
Tamira invests $5,000 in an account
Rate of interest = 4%
Time = 3 years
Case 1:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 1
Formula :
A=5624.32
There will be $5624.32 in the account after 3 years if the interest is compounded annually.
Case 2:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 2
Formula :
A=5630.812
There will be $5630.812 in the account after 3 years if the interest is compounded semi-annually.
Case 3:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 4
Formula :
A=5634.125
There will be $5634.125 in the account after 3 years if the interest is compounded quarterly.
Case 4:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 4
Formula :
A=5636.359
There will be $5636.359 in the account after 3 years if the interest is compounded monthly