Question

Find the amount accumulated after investing a principal P for t years at an interest rate compounded k times per year. P = $3,500 r= 5% t = 10 k = 4

A = ?

Answer 1

A = 5,752.60

Explanation:

P = $3,500

r= 5%

t = 10

k = 4

A = P(1 + r/k)^kt

= 3,500(1 + 0.05/4)^4*10

= 3,500(1 + 0.0125)^40

= 3,500(1.0125)^40

= 3,500(1.6436)

= 5,752.6

A = 5,752.60