Question

19. Heather invests $4,900 in an account with a 3.5% interest rate, making no other deposits or withdrawals. What will Heather’s account balance be after 5 years if the interest is compounded 2 times each year?

Answer 1

5,828.28

Explanation:

Answer 2

`\$5,828.28`

Explanation:

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=5\ years\\ P=\$4,900\\ r=0.035\\n=2`

substitute in the formula above

`A=\$4,900(1+(0.035)/(2))^(2*5)`

`A=\$4,900(1.0175)^(10)=\$5,828.28`