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ddd [48]
2 years ago
8

Please really need help anyone

Mathematics
1 answer:
Ronch [10]2 years ago
5 0

Answer:

<em>A = $5183.36</em>

Step-by-step explanation:

<u>Compound Interest</u>

It occurs when the interest is reinvested rather than paying it out. Interest in the next period is then earned on the principal sum plus previously accumulated interest.

The formula is:

{\displaystyle A=P\left(1+{\frac {r}{n}}\right)^{nt}}

Where:

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

Abdul deposited P=$4000 into an account with r=2.6% = 0.026 compounded quarterly. Since there are 4 quarters in a year, n=4. We are required to calculate the amount in the account after t=10 years.

Applying the formula:

{\displaystyle A=4000\left(1+{\frac {0.026}{4}}\right)^{4*10}}

{\displaystyle A=4000\left(1.0065\right)^{40}}

A = $5183.36

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