Question

THIS IS A MULTI PART QUESTION

The Fresh and Green Company has a savings plan for its employees. If an employee makes an initial contribution of $1000, the company pays 8% interest
O compounded quarterly.
Using the function y = a (1+)²
Part A
Identify each value for the equation.
a=
R=
N=

Answer 1

After 5 years, with an initial deposit of $1000 and an 8% interest rate compounded quarterly, the employee would have approximately $1485.95 in the savings account.

In the compound interest formula, the variables represent the following:

P = $1000 (initial deposit)

r = 0.08 (interest rate per compounding period, which is 8% or 0.08)

n = 4 (number of times interest is compounded per year, quarterly compounding)

t = 5 years (time in years)

The compound interest formula is given by:

`\[ A = P \left(1 + (r)/(n)\right)^(nt) \]`

Substitute the given values into the formula:

`\[ A = 1000 \left(1 + (0.08)/(4)\right)^(4 * 5) \]`

Calculate the result to find the money in the account after 5 years.

`\[ A = 1000 \left(1 + (0.08)/(4)\right)^(4 * 5) \]\[ A = 1000 \left(1 + 0.02\right)^(20) \]\[ A = 1000 * (1.02)^(20) \]\[ A \approx 1000 * 1.485946 \]\[ A \approx 1485.95 \]`

After 5 years, with an initial deposit of $1000 and an 8% interest rate compounded quarterly, the amount in the account would be approximately $1485.95.

The complete question is:

The Fresh and Green Company has a savings plan for employees. If an employee makes an initial deposit of $1000, the company pays 8% interest compounded quarterly. If an employee withdraws the money after 60 months, how much is in the account?

P=$1000

r =

n =

t=

years

Money in the account after 5 years $