Answer:
Step-by-step explanation:
The interest will be compounded quarterly every year, it means in each year the interest will be calculated 4 times.
In 6 years in total [tex]6 \times4[/tex] = 24 times the interest will be calculated.
The yearly interest rate is 4%. Hence, the quaterly interest rate will be [tex]\frac{4}{4}[/tex] = 1%.
Hence, after calculating 24 times, the amount will be turned to [tex]35000 \times (\frac{101}{100} )^{24}[/tex] = 44440.7127≅ 44441.
Hence, the total compound interest is $(44441 - 35000) = $9441
Answer:
The amount of investment after 6 years is $ 44439.5
Step-by-step explanation:
Given as :
The principal amount = p = $ 35,000
The rate of interest = r = 4 % compounded quarterly
The time period of loan amount = t = 6 years
Let The Amount after 6 years = $ A
So, From compounded method
Amount = Principal × [tex](1+\dfrac{\textrm rate}{4\times 100})^{4\times \textrm time}[/tex]
Or, A = P × [tex](1+\dfrac{\textrm r}{4\times 100})^{4\times \textrm t}[/tex]
Or, A = $ 35000 × [tex](1+\dfrac{\textrm 4}{4\times 100})^{4\times \textrm 6}[/tex]
or, A = $ 35000 × [tex](1.01)^{24}[/tex]
Or, A = $ 35000 × 1.2697
∴ A = $ 44439.5
So, Amount after 6 years = $ A = $ 44439.5
Hence The amount of investment after 6 years is $ 44439.5 Answer
