Question

How do I do this one ??

Answer 1

Principal Amount = P = $5000
Interest rate = r = 0.45% = 0.0045
Time in years = t
Compounding periods per year = n = 4


The formula for compound interest is:


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

Using the given values, we get:


`A=5000(1+ (0.0045)/(4) )^(4*t) \\ \\ A=5000(1.001125)^(4t)`

So, comparing the above equation to given equation we can write:

a = 5000
b = 1.00113 (Rounded to nearest hundredth-thousandth
c = 4t