Question

Amaya hes made deposits of $580 at the end of every quarter for four years. If interest is 5% oompounsod annualy, how mush will Amaya have accumulated sox yeacs aher the ast deposin Amaya withave aceumulated 5 (Round the thal answer to the nearest cent as needed. Round all intermediate volues to ax decimal pisces as needed)

Answer 1

To calculate the accumulated amount after six years, we can use the formula for compound interest: A = P(1 + r/n)^(nt). Plugging in the given values, we find that Amaya will have accumulated approximately $763.37.

Step-by-step explanation:

To calculate the accumulated amount after six years, we need to use the formula for compound interest:

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

Where:

• A is the accumulated amount
• P is the principal amount (the initial deposit)
• r is the annual interest rate (expressed as a decimal)
• n is the number of times interest is compounded per year
• t is the number of years

In this case, P = $580, r = 0.05, n = 1 (compounded annually), and t = 6. Plug in these values into the formula:

A = $580(1 + 0.05/1)^(1 * 6)

Simplifying:

A = $580(1 + 0.05)^6

A = $580(1.05)^6

Using a calculator, we find that A is approximately $763.37. Therefore, Amaya will have accumulated $763.37 after six years.