Principal: $9500 Rate: 4.5% Compounded: monthly Time: 4 years amount in account:

Question

Principal: $9500 Rate: 4.5% Compounded: monthly Time: 4 years amount in account: $9643.30; interest earned: $143.30 amount in account: $11, 369.74; interest earned: $1869.74 amount in account: $9936.43; interest earned: $436.43 amount in account: $13, 206.04; interest earned: $1828.93 Solve the problem. A = P(1 + r/n)^nt P = A/(1 + r/n)^nt A = Pe^rt Y = (1 + r/n)^n - 1 How much money should be deposited today in an account that earns 7% compounded quarterly so that it will accumulate to $6500 in 5 years? $4634.41 $4594.36 $9196.06 $1905.64

Explanation / Answer

Principal = $9500 ; rate = 4.5% ; t = 4 yrs

(compounded monthly)     A = P(1 + rate/n)^(n*t)

= 9500( 1 + 0.045/12)^12*4

= $11369.74

Interest = $11369.74 - $ 9500 = $1869.74

Option B

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.