Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Using compound interest, it is found that you would have $1524.86.
What is compound interest?
The amount of money earned, in compound interest, after t years, is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
In which:
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
- t is the time in years for which the money is invested or borrowed.
In this problem, we have that the values of the parameters are given by: P = 1250, r = 0.05, n = 4, t = 4. Hence:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
[tex]A(4) = 1250\left(1 + \frac{0.05}{4}\right)^{4 \times 4} = 1524.86[/tex]
Tou would have $1524.86.
More can be learned about compound interest at https://brainly.com/question/25781328
Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.