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Suppose that $6500 is placed in an account that pays 3% interest compounded each year.Assume that no withdrawals are made from the account.Follow the instructions below. Do not do any rounding.

Suppose That 6500 Is Placed In An Account That Pays 3 Interest Compounded Each YearAssume That No Withdrawals Are Made From The AccountFollow The Instructions B class=

Sagot :

Given

Part A

[tex]\begin{gathered} P=\text{ \$6,500} \\ r=3\text{ \%} \\ t=1 \end{gathered}[/tex]

Formula

[tex]A=P(1+\frac{r}{n})^{nt}[/tex][tex]\begin{gathered} A=6,500(1+\frac{0.03}{1})^{1\times1} \\ \\ A=6,500(1.03) \\ A=\text{ \$}6,695 \end{gathered}[/tex]

Part B

[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ \\ P=6500 \\ R=3\text{ \%} \\ t=2 \end{gathered}[/tex][tex]\begin{gathered} A=6500(1+\frac{0.03}{1})^{1\times2} \\ \\ A=6500(1.03)^2 \\ A=6500(1.0609) \\ A=\text{ \$}6895.85 \end{gathered}[/tex]

The final answer

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