Question

Francisco invested 5,000 into an account that earns 3% compounded quarterly. How many times will Francisco earn interest after keeping the money in the account for 5 years.

Answer 1

Answer:Amount = 10,002.21

Step-by-step explanation:4 x 5 = 20 times

2.-

Principal = 5,000

Interest rate per yr = 3%

Compounded times per yr = 4

Time in years = 5

The formula is amt = p*(1 + r/n) ^ (n*t),

thus

Amount = 5,805.92

3.-

If Time in years = 23.2

then

Amount = 10,002.56

4.-

Principal = 5,000.00

Interest rate per yr = 5.82%

Compounded times per yr = 4

Time in years = 12

Answer 2

0.161184 times

Explanation:

Since, the amount formula in compound interest,

`A=P(1+r)^t`

Where,

P = principal amount,

r = rate per period,

t = number of periods,

Here, P = 5000,

Annual rate = 3 %,

So, the quarterly rate, r =
`(3)/(4)` = 0.75% = 0.0075

Time = 5 years,

Number of quarters, t = 5 × 4 = 20,

Hence, the amount after 5 years,

`A=5000(1+0.0075)^(20)= \$ 5805.92071152=\approx \$ 5805.92`

Interest = $ 5805.92 - $ 5000 = $ 805.92,

`\because (I)/(P) = (805.92)/(5000)=0.161184`

Therefore, he will earn 0.161184 times interest after keeping the money in the account for 5 years.