Question

P = $700, r = 5%, t = 8 years; compounded quarterly
HELP ME ASAP!!!

Answer 1

$1,041.69

Explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 5/100

r = 0.05 rate per year,

Then solve the equation:

Forumla; P(1 + r/n)nt

700.00(1 + 0.05/4)(4)(8)

700.00(1 + 0.0125)(32)

$1,041.69

hope this helps!

Answer 2

$1,041.69

Explanation:

Compound interest formula:
`A=P(1+(r)/(n))^{nt`

A = amount (future value ($))

P = principal (orignal amount - $700)

R = rate (written as a decimal - 5%/100= 0.05)

N = compound (quarterly - 4) 4 quarters in 1 yr.

T = number of years (8)

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

`A=P(1+(r)/(n))^(nt)\\\\A=700(1+(0.05)/(4))^(4*8) < == start\ from\ the\ parenthesis\ and\ divide\ first\\\\A=700(1+0.0125)^(4*8) < == add\ the\ \#s\ in\ the\ parenthesis\\\\A=700(1.0125)^(4*8) < == multiply\ the\ exponents\\\\A=700(1.0125)^(32) < ==multiply\\\\A=700(1.488131) < ==multiply\\\\A=1041.691\\\\A=$1,041.69`

Hope this helps!