Mathematics
Vanebuen
26

Thomas opened a savings account with an annual interest rate of 7% and an initial deposit of $5000. if his interest is compounded quart ly , how how much is in thomas account after 4 years ? round your answer to the nearest cent. interest compounded quarterly a=p (1+ r/4) 4th $=

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(1) Answers
Genna57

[latex]A=P(1+ \frac{r}{n} )^{nt}[/latex] where A=future amount P=present amount r=rate in decimal n=number of times per year compounded t=time in years given quarerly, means n=4 P=5000 r=0.07 t=4 [latex]A=5000(1+ \frac{0.7}{4} )^{4*4}[/latex] [latex]A=5000(1+ 0.175 )^{16}[/latex] [latex]A=5000(1.175 )^{16}[/latex] A=66004.853 answer is $66004.85

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