Question

Lynne invested 35,000 into an account earning 4% annual interest compounded quarterly she makes no other deposits into the account and does not withdraw any money. What is the balance of Lynne's account in 5years

Answer 1

Answer:$42,706.65

Step-by-step explanation: took test k12

Answer 2

Hello!

Lynne invested 35,000 into an account earning 4% annual interest compounded quarterly she makes no other deposits into the account and does not withdraw any money. What is the balance of Lynne's account in 5years

Data:

P = 35000

r = 4% = 0,04

n = 4

t = 5

P' = ?

I = ?

We have the following compound interest formula

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

`P' = 35000*(1+(0,04)/(4))^(4*5)`

`P' = 35000*(1+0,01)^(20)`

`P' = 35000*(1,01)^(20)`

`P' = 35000*(1.22019003995...)`

`P' \approx 42,706.66`

So the new principal P' after 5 years is approximately $42,706.66.

Subtracting the original principal from this amount gives the amount of interest received:

`P' - P = I`

`42,706.66 - 35000 = \boxed{\boxed{7,706.66}}\end{array}}\qquad\checkmark`

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I Hope this helps, greetings ... Dexteright02! =)