Question

A principal of ​$5000 is invested in an account paying an annual rate of 7​%. Find the amount in the account after 5 years if the account is compounded​ semiannually, quarterly, and monthly.

Answer 1

Answer:

$7,012.76

Step-by-step explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 7/100

r = 0.07 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 5,000.00(1 + 0.07/1)(1)(5)

A = 5,000.00(1 + 0.07)(5)

A = $7,012.76

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $5,000.00 at a rate of 7% per year compounded 1 times per year over 5 years is $7,012.76.