Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
This problem is about compounded interest. So, the general formula for compounded interest is:
[tex]\begin{gathered} Y=Y_0\cdot(1+i)^{\frac{t}{t_0}} \\ Y=\text{The amount at time t} \\ Y_0=\text{The initial amount} \\ i=\text{The interest in decimal number} \\ t_0=Is\text{ the time of the compounded interest } \\ t=\text{The time at want to know the amount} \end{gathered}[/tex]In this case, the interest is i=6%=0.06, the initial amount i $5500 the t0 is quarterly=1/4 year, t is 2 years, so the amount at 2 years is:
[tex]\begin{gathered} t=2\text{years} \\ \frac{t}{t_0}=\frac{2\text{years}}{\frac{1}{4}\text{year}}=8_{} \\ Y_0=5500 \\ i=0.06 \\ Y=5500\cdot(1+0.06)^8=8766.16 \\ So,\text{ her money earn:} \\ Y-Y_0=8766.16-5500=3266.16 \end{gathered}[/tex]Her money earn $3266.16 in 2 years.
Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.
