Need help on number 2
1 answer:
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Answer:
Please check the explanation.
Step-by-step explanation:
To find the amount we use the formula:
Here:
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
Given
P=$2000
r=4.5%
n=4
t = 5 years
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<u><em>Calculating compounded quarterly </em></u>
After plugging in the values
Thus, If you deposit $2000 into an account paying 4.5% annual interest compounded quarterly, you will have $2501.50 after five years.
<u><em>Calculating compounded semi-annually</em></u>
n = 2
Thus, If you deposit $2000 into an account paying 4.5% annual interest compounded semi-annually, you will have $2,498.41 after five years.