Answer:
4335.61
Step-by-step explanation:
Using the equation A = P (1 + r/n)^nt
lets fill in the variables,
P (principal) is 3500.00
r (rate) is .04375 - we do this in decimal form
n (number of times interest is doubled) here it is annually, could be monthly or daily too, but we are told annually, so we use 1
t (time) is 5 years
So: 3500(1+.04375/1) ^ 1(5)
pemdas
parenthesis first 1 +.04375/1 = 1.04375
exponents next 1 x 5 = 5
so now we have 3500 (1.04375) ^5
take 1.04375 to the power of 5 (pemdas) then multiplication
= 3500(1.2387465058) or
A = 4335.61
This is the same result as calculating simple interest for 5 years but each year calculating off the new Principal amount that includes interest.
3500 x .04375 = 153.125 or 3653.125 *(year one)
159.82 = 3812.95
166.82 = 3979.77
174.11 = 4153.88
181.73 = 4335.61
