Question

Does anybody know how to solve this plz

Answer 1

`A=P(1+ (r)/(m))^(mt)`

This was the formula that was given.

A is the final amount, which is what we're solving for.

P is the original money amount, which is $5,000

r is the interest rate, which is 1%, or 0.01

m is the amount of times the interest is compounded per year. Since the interest is compounded quarterly, interested is compounded 4 times per year.

t is the time the money is in the bank, which is 2 years

That's all we need to solve the equation now

`A=P(1+ (r)/(m))^(mt)`

`=5000(1+ (0.01)/(4))^(4(2))`

`=5000(1.0025)^(8)`

`\approx 5100.88`

That's your answer

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