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If $5958 is invested in an account at 5.9% annual interest compounded quarterly, how much will be in the account in 7 years if no money is withdrawn (Round your answer to the nearest hundredth)?

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Sehosun

Answer:

Pretty sure in 7 years with no money withdrawn it would be $8,418.65

Step-by-step explanation:

because you would find out what 5.9% of $5958 which would be $351.522 you get that by multiplying [5958*5.9%=351.522]

Then multiply 351.522 by 7 and you get 2460.654 [351.522*7=2460.654]

Finally you add 2460.654 and 5958 and you get 8418.654 [5958+2460.522=8418.654]

Then you round down .654 and you get [8418.65]

Parrain

Based on the amount invested, the interest rate and the period of compounding, after 7 years, the account would have $8,977.47.

The period of compounding is quarterly so you need to convert both the interest and the number of years to a quarterly basis.

Rate = 5.9% / 4 quarters = 1.475%

Number of periods = 7 x 4 = 28 quarters

The amount in the account is:

=Amount x (1 + rate) ^ number of periods

= 5,958 x ( 1 + 1.475%)²⁸

= $8,977.47

In conclusion, the amount will be $8,977.47.

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