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algol13
3 years ago
13

A money market account pays 5.3% interest

Mathematics
1 answer:
Molodets [167]3 years ago
4 0

~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$12000\\ r=rate\to 5.3\%\to \frac{5.3}{100}\dotfill &0.053\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &5 \end{cases} \\\\\\ A=12000\left(1+\frac{0.053}{4}\right)^{4\cdot 5}\implies A=12000(1.01325)^{20}\implies A\approx 15613.98

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