Question

I need help please I don't get it none is helping me

Answer 1

a. $5,287.30

b. 5.75%

Step-by-step explanation:

We were given that:

Rate = 5.6% = 5.6/100 = 0.056

Compounding, n = 12

Principal, P = $5,000

a) After 1 year, Joseph has:

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ t=1\text{ year} \\ A=5000(1+(0.056)/(12))^(12*1) \\ A=5000(1.0574599283787860435748137710923) \\ A=5287.2996\approx5287.30 \\ A=\text{\$}5287.30 \end{gathered}`

b) The APY is given by:

`\begin{gathered} APR=(1+(r)/(n))^n-1 \\ APR=(1+(0.056)/(12))^(12)-1 \\ APR=1.05746-1 \\ APR=0.05746\approx5.746\approx5.75 \\ APR=5.75\text{\%} \\ \end{gathered}`