Answer:
Step-by-step explanation:
Formula to be used,
A = [tex]P(1+\frac{r}{n})^{nt}[/tex]
Here, A = Final amount
P = Principal amount
r = rate of interest
n = Number of compounding (In a year)
t = Duration of investment (In years)
Question (5)
P = $4250
r = 0.015
n = 4
t = 3 years
A = [tex]4250(1+\frac{0.015}{4})^{4\times 3}[/tex]
A = [tex]4250(1.00375)^{12}[/tex]
A = $4445.24
Part (C)
1). P = $6000
r = 0.03
n = 2
t = 10 years
A = [tex]6000(1+\frac{0.03}{2})^{2\times 10}[/tex]
= [tex]6000(1.015)^{20}[/tex]
= $8081.13
2). P = $9000
r = 0.05
n = 2
t = 8 years
A = [tex]9000(1+\frac{0.05}{2})^{2\times 8}[/tex]
= [tex]9000(1.025)^{16}[/tex]
= $13360.55
