Respuesta :
Answer:
There will be $5624.32 in the account after 3 years if the interest is compounded annually.
There will be $5630.812 in the account after 3 years if the interest is compounded semi-annually.
There will be $5634.125 in the account after 3 years if the interest is compounded quarterly.
There will be $5636.359 in the account after 3 years if the interest is compounded monthly
Step-by-step explanation:
Tamira invests $5,000 in an account
Rate of interest = 4%
Time = 3 years
Case 1:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 1
Formula :[tex]A=P(1+r)^t[/tex]
[tex]A=5000(1+0.04)^3[/tex]
A=5624.32
There will be $5624.32 in the account after 3 years if the interest is compounded annually.
Case 2:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 2
Formula : [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
[tex]A=5000(1+\frac{0.04}{2})^{2 \times 3}[/tex]
A=5630.812
There will be $5630.812 in the account after 3 years if the interest is compounded semi-annually.
Case 3:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 4
Formula : [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
[tex]A=5000(1+\frac{0.04}{4})^{4 \times 3}[/tex]
A=5634.125
There will be $5634.125 in the account after 3 years if the interest is compounded quarterly.
Case 4:
Principal = 5000
Rate of interest = 4%
Time = 3 years
No. of compounds per year = 4
Formula :[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
[tex]A=5000(1+\frac{0.04}{12})^{12 \times 3}[/tex]
A=5636.359
There will be $5636.359 in the account after 3 years if the interest is compounded monthly
