Determine the correct answer to the following
2 answers:
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Answer:
the balance after 5 years is: 26540.744
Step-by-step explanation:
Given the information:
- P = initial balance = $ 20,000
- r = interest rate (decimal) = 5% = 0.05
- n = number of times compounded annually = 4
- t = time = 5
We have the compound interest function ta model the situation is:
<=> A =
<=> A = $26540.744
Hence, the balance after 5 years is: $26540.744