Question

Please really need help anyone

Answer 1

A = $5183.36

Explanation:

Compound Interest

It occurs when the interest is reinvested rather than paying it out. Interest in the next period is then earned on the principal sum plus previously accumulated interest.

The formula is:

`{\displaystyle A=P\left(1+{\frac {r}{n}}\right)^(nt)}`

Where:

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

Abdul deposited P=$4000 into an account with r=2.6% = 0.026 compounded quarterly. Since there are 4 quarters in a year, n=4. We are required to calculate the amount in the account after t=10 years.

Applying the formula:

`{\displaystyle A=4000\left(1+{\frac {0.026}{4}}\right)^(4*10)}`

`{\displaystyle A=4000\left(1.0065\right)^(40)}`

A = $5183.36