Respuesta :
Answer:
Alma would have $ 4,269.61 for her trip in four years' time
Explanation:
The amount she would have for her trip in four years' time can be computed using the future value formula which is given as:
FV=PV*(1+r/t)^N*t
PV is the amount she has today which is $3,500
r is the rate of return the credit union offered her,that 5%
t is the number of times in a year the interest is compounded which is 4
N is the number of years the investment would last which is 4 years
FV=$3,500*(1+5%/4)^4*4
FV=$3,500*(1+1.25%)^16
FV=$3,500*(1.0125)^16
FV=$3,500*1.219889548
FV=$4,269.61
Alma would have $ 4,269.61 for her trip in four years if the $3,500 is invested at 5% compounded quarterly
Answer:
A = $4,269.61
Explanation:
This question is a compound interest problem, we will use the compound interest formula to solve the given problem.
Formula formula for compound interest is by;
A = P (1+ r÷n)^nt
We are given the following values as ;
P= $3,500
r = 5% = 0.5
n = 4
t = 4
Substituting the values into the formula we have;
A = $3,500( 1+ 0.5÷4)^4×4
A = $3,500(1 +0.0125)^16
A = $3,500(1.0125)^16
A = $3,500× 1.22
A = $4,269.61
