Question

Marcy puts $500.00 into an account to use for school expenses the account earns 8%interest compounded quarterly how much will be in the account after 5 years

Answer 1

Marcy will have $742.97 in her account after 5 years, based on an 8% interest rate compounded quarterly.

Step-by-step explanation:

The question deals with the mathematical concept of compound interest. Marcy is putting $500.00 into an account that earns an 8% interest rate, compounded quarterly. To find the amount in the account after 5 years, we use the formula for compound interest: A = P(1 + r/n)^(nt), where:

• P is the principal amount ($500)
• r is the annual interest rate (8% or 0.08)
• n is the number of times that interest is compounded per year (4, since it's quarterly)
• t is the time the money is invested, in years (5 years)

Plugging the values into the formula, we get:

A = 500(1 + 0.08/4)^(4*5)

A = 500(1 + 0.02)^(20)

A = 500(1.02)^20

A = 500 * 1.485947

A = $742.9735

Therefore, after 5 years, Marcy will have $742.97 in her account, assuming the interest is compounded quarterly.

Answer 2

We will replace in the following formula:

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

We replace as follows:

`A=(500)(1+(0.08)/(12))^((12)(5))\Rightarrow A\approx744.92`

So, Marcy earned approximately $744.92.