Respuesta :
Answer:
$8541.33
Step-by-step explanation:
use the equation
[tex]mv = p {(1 + \frac{r}{n} )}^{nt} [/tex]
MV = matured value
P = principal
r = yearly interest rate
n = number of periods the interest is compounded per year
t = terms in years
P = $7000
r = 0.04 ( 4% )
n = 4
t = 5
so it should be
[tex]mv = 7000 {(1 + \frac{0.04}{4}) }^{4 \times 5} [/tex]
Answer:
$8,546.98 since you are rounding
Step-by-step explanation:
Identify the values of each variable in the formulas. Remember to express the percent as a decimal.
A=?
P= $7,000
r=0.04
t=5
For monthly compounding, n=12. There are 12 months in a year.
A=P(1+rn)nt
Substitute the values in the formula.
A=7,000(1+0.0412)12⋅5
Compute the amount. Be careful to consider the order of operations as you enter the expression into your calculator.
A=$8,546.98
