Question

Q

Course Pretest
Question 1
Points 2
Viola deposited $5,000 in the bank at 4% for 10 years. How much will she receive at
the end of the 10th year? The interest would be calculated at quarterly basis.
O $7,400.00
O $7,424.00
O $7,444.32
$7,542.23
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Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$5000\\ r=rate\to 4\%\to (4)/(100)\dotfill &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &10 \end{cases} \\\\\\ A = 5000\left(1+(0.04)/(4)\right)^(4\cdot 10) \implies A=5000(1.01)^(40)\implies A \approx 7444.32`